The FCA was “aware in advance” of the Chancellor’s Budget plans to liberalise pensions, the Treasury select committee has heard.
Giving evidence to the committee this morning (3 April), George Osborne said the Treasury “had engaged with the FCA” over its radical plans to reform pensions, and claimed “the leadership of the FCA were supportive of the proposals”.
Earlier this week, Chris Woolard, the City regulator’s director of policy, risk and research, told the committee that the FCA had not been consulted over the Chancellor’s pension reforms or had the opportunity to share its modelling into the effects of a change to annuity rules.
However, Mr Osborne told MPs that they did know of his plans. When asked by Labour MP Teresa Pearce whether the reforms were a vote of no confidence in the FCA, with the regulator in the process of conducting a review of the pension market, just as he announced the reforms, the Chancellor said “no”.
He added: “I have confidence in the FCA as an institution to help and protect consumers.”
Mr Osborne stated his confidence in the FCA was despite the “egregious error” which saw director of supervision Clive Adamson leak market-sensitive information to a journalist last week.
He said the regulator’s announcement of an independent review into its policy on releasing information was “good news” while he pledged confidence in FCA chairman John Griffith-Jones.
The Chancellor also hit back at Labour Party criticism of his annuity reforms, claiming: “The view that people couldn't be trusted to manage their savings is patronising.”
