The Financial Conduct Authority has announced that it will be conducting a thematic review to evaluate the guidance given to consumers regarding how to satisfy their retirement income needs.
This review is an investigation of how financial adviser businesses are providing retirement income advice and an evaluation of the calibre of results clients are receiving.
Work on the topic of “Assessing Suitability Review 2,” which had been previously scheduled, was put on hold so that resources may be focused on the FCA’s response to Covid. The operation of the retirement income advice market will be examined in this new topic study. The FCA says it will also pay close attention to how businesses are adapting to shifting customer demands brought on by increased living expenses.
The government’s pension freedom changes have altered how consumers can access their retirement funds. The FCA says that given the broader number of retirement options available, it is essential that consumers receive sound guidance when they first access their pension resources and, when appropriate, on an ongoing basis.
The number of customers receiving income from pension funds that are still invested has significantly increased since 2015 according to the FCA. The FCA highlights that advice in this area can be complex and so it’s critical that businesses comprehend the wants of their clients and make sure their advisory solutions continuously provide reliable assistance.
The findings of the review will be included in the FCA’s sector strategy going forward. The outcomes will be a crucial measure of how businesses are carrying out consumer duty.