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ABI response to FCA thematic review into annuities and market study into retirement income

The Financial Conduct Authority (FCA) today published the findings of its thematic review into annuity sales practices and the interim findings of its market study into retirement income.

Otto ThoresenCommenting on the findings, Otto Thoresen, Director General of the ABI said:
 
“The two documents the FCA published today identify a number of important issues. The market report recognises that annuities bought on the open market can be good value for money.

"We have always stressed the value of shopping around and the need for consumers to have the right information about their retirement options, which is why the industry introduced the ABI Retirement Choices Code. Providers recognise that in the new pensions world of greater choice more needs to be done to ensure good outcomes for customers. The ABI had urged the FCA to replace our Code and we are therefore pleased the FCA plans to develop the Code into rules that will apply across the entire pensions market.

The ABI had urged the FCA to replace our Code and we are therefore pleased the FCA plans to develop the Code into rules that will apply across the entire pensions market- Otto Thoresen, ABI

"Pension providers are working hard to prepare for Budget changes coming into force at April 2015. The development of enhanced annuities and the ABI Code were both driven by the market to improve customer outcomes and providers are fully committed to the further improvements needed to ensure customers can navigate the new retirement market successfully. Customers must be clearly informed about their options, particularly if they may be entitled to an enhanced annuity or other products the industry has developed to meet customer needs.

"Looking forward, we agree with the FCA that building a new system which focuses on customer behaviour is crucial and the industry will be looking closely at the report findings, and working with the regulator to address areas of concern."


Last updated 01/07/2016