FCA probes UK annuity sales to ensure pensioners get fair deal
Wednesday 07 August 2013
Britain's Financial Conduct Authority is considering action to ensure pensioners are not duped into buying annuities that give them a poor deal for their life savings by financial services firms.
In a statement published on Monday the regulator said it was reviewing the annuities market, aiming to make sure consumers are not prevented from shopping around for the best deal.
The probe was prompted by fears pensioners are not given enough information by pension providers on what annuity products are available on the open market, leaving many to transfer funds automatically to their in-house products.
"We are seeking to build a comprehensive picture of the market and to establish whether further regulatory interventions could help consumers make the most of their income in retirement," the FCA said.
In February, the Association of British Insurers (ABI), whose 350 members run some of Britain's biggest pension schemes, pledged to help pension savers find the best retirement deal.
The ABI said its members had signed up to a "Code of Conduct on Retirement Choices", requiring them to spell out options for buying an annuity, which converts pension savings into retirement income, up to two years before an individual retires.
The ABI code followed a probe by regulators in January into whether retirees who buy an annuity directly from their pension provider pay more than they would if they had shopped around.
Regulators also said they would look into whether insurers hinder their customers from shopping around..
The FCA acknowledged the ABI's "proactive lead in improving transparency around annuities". But added it was also aware of "the potential weaknesses of industry self-regulated codes".
The regulator said it planned to invite representatives from industry and consumer organisations to contribute to a debate on the annuity market.
"If this work does lead to new rules on firms, these would be developed in line with our policy framework. We would consult on the issue so stakeholders would have another opportunity to provide input," the FCA said.
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Kenya bus attack: Al-Shabaab militants slaughter 28 non-Muslims who failed to recite Koran
That Sugar Film director Damon Gameua receives shocking diagnosis after going on healthy sugar diet for just 60 days
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Revealed: How the world gets rich – from privatising British public services
Myleene Klass: Ed Miliband 'strikes back' by comparing UK's need for Labour's mansion tax to Hear'Say track
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...