Search
Close this search box.

Two years, and FCA annuity probe incomplete

Two years, and FCA annuity probe incomplete

There is surprise and disappointment that after two years, the FCA annuity probe is not complete. The Financial Conduct Authority (FCA) has just issued two reports.

The first report contains a critical analysis as to how the whole market for retirement income is working and makes recommendations for a number of changes to establish practices. The report suggests there have been major failures in communication between firms and their customers. The second report looks at how annuities are being sold and concludes that firms’ sales practices are contributing to consumers not shopping around and switching and thus getting the best deal from annuity purchase.

Commenting on both reports, Malcolm McLean, senior consultant at Barnett Waddingham says:“It is interesting to note that the FCA is still convinced that for people with average-sized pension pots, the right annuity purchased on the open market offers good value for money. It is disappointing however, that after two years the FCA has still not completed its full review of the annuity sales process and will still be conducting further investigations into the workings of the market, which back in February they described as a “disorderly market”.

 “The recommendations the FCA have made in the first report certainly have merit, in particular the need to replace the wake-up pack which in its present form is clearly not working. Also, the idea of a “pensions dashboard” or “pensions passport” which advocates have previously suggested, is worth pursuing in the interests of enabling consumers to view all their lifetime pension savings (including their state pension) in one place. Critics will be no doubt be surprised that despite all its criticisms of system and firms’ sales methods, the FCA has apparently found no evidence of misselling and/or the need to contemplate enforcement action against any individual firm.”
 

Read more

Latest News

Read More

Rise in recruitment fraud must urgently be checked

28 March 2024

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

University of Cambridge – Judge Business SchoolSalary: £32,332 to £38,205 pa, pro rata

University of Cambridge – Judge Business SchoolSalary: £29,605 to £33,966 pa, pro rata

University of Oxford – Blavatnik School of GovernmentSalary: Grade 5: £28,759 – £33,966 per annum (with a discretionary range to £37,099)

Software Development Director (Exec Team Seat). Remote Working with Ellesmere Port Office-Based Minimum 1 Day Per Week. + Contribution towards membership fees. £120,000 – £140,000

Read the latest digital issue of theHRDIRECTOR for FREE

Read the latest digital issue of theHRDIRECTOR for FREE