Pensions - Articles - Pension Wise offers limited help to those selling annuities

 • Focus needs to be on encouraging adviser involvement

 Responding to the FCA consultation on Pension Wise standards when offering guidance on the secondary annuity market, Aegon has questioned the value of guidance when the decision to sell an annuity is so personal.

 Steven Cameron, Pensions Director at Aegon said: “The risks and benefits of selling an existing annuity are so specific to the individual that any guidance Pension Wise may deliver can be of only limited value, with many individuals needing regulated advice with a personal recommendation. The FCA has highlighted the many risks of consumer detriment so a ready supply of advice is critical to make this a safe market for consumers to enter.

 “While the Government has decided Pension Wise will play a role, the priority should now be on offering advisers clarity on regulatory and FOS expectations in this new market. To get involved, advisers need confidence that they won’t be judged with the benefit of hindsight.

 “It would be helpful for the FCA to offer early clarity that their expectations on adviser firms will be based on the same risks and issues underpinning their Pension Wise guidance proposals.”