Pensions - Articles - FCA excludes DB transfers from evaluation of RDR and FAMR


The FCA provided an update on its evaluation of the Retail Distribution Review and the Financial Advice Market Review, including a decision not to bring issues relating to defined benefit transfers into the scope of this initiative. The update reflects points raised by those who responded to the FCA’s call for input earlier this year, designed to help finalise the scope of the evaluation.

 Steven Cameron, Pensions Director at Aegon said: “Aegon had called on the FCA to focus on the potential for the ‘advice gap’ for defined benefit scheme members to be a key part of the review of RDR and FAMR. While the FCA has decided against this, we are pleased it has noted concerns raised through its call for input and we welcome the assurances given that these concerns will be fed into other projects. In its work on defined benefits, the FCA has rightly focussed on ensuring individuals who receive advice receive suitable advice. But attention also needs to be given to whether individuals may struggle to access advice in this key area, and if the supply of advice will reduce further as a result of regulatory interventions or increases in Financial Ombudsman Service compensation limits. We would welcome the FCA ensuring its drive to improve the quality of such advice does not inadvertently lead to a shrinkage in supply, which could be to the detriment of defined benefit members.”

 On the FCA’s confirmation that it will focus on the regulatory perimeter between guidance and regulated advice, Cameron said:
 “We welcome the focus the FCA will give within its RDR and FAMR evaluation to the boundary between guidance and advice. Most people would benefit from financial advice at certain points in their lives. But it’s also important to supplement this with guidance services for example through the workplace or for those with smaller amounts to invest.”

   

Back to Index


Similar News to this Story

Third generation DC pensions to emerge within 5 to 10 years
The Thinking Ahead Institute (TAI) has today released research that describes an industry on the cusp of significant change. The challenges that need
Treasury has no vision for pensions as Bill measures blocked
Measures in the proposed Pensions Bill to advance the pensions dashboard, strengthen the Regulator and enable new forms of pension provision are welco
Reaction to the Pensions content in the Queens Speech
Reaction from Aegon, XPS Pensions Group and Hymans Robertson on the Pensions content in the Queens Speech

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.