The Financial Conduct Authority (FCA) will be given the power to cap 'excessive' early exit fees on pension pots.

The new FCA responsibility will be introduced through legislation and the government will be publishing a formal response.

The proposals will see the FCA being independently responsible for determining what the level of the cap on early exit fees will be.  The FCA is due to launch a consultation on what this should be.

Around 700,00 (16%) customers in contract-based schemes could face some form of early exit charge for accessing their pot.