The Financial Conduct Authority’s retirement outcome market study has been delayed until the second quarter of 2016.
In an update on pensions activities, the regulator explained that instead of launching early next year, the review will now be pushed back “having considered developments in the market since the introduction of the pension reforms, other FCA work and wider initiatives, and the feedback we have received from stakeholders”.
Revising its timing will also allow the review to be sequenced with other initiatives, including the Financial Advice Market Review, the ongoing consultation on changes to pension rules and guidance, data collection exercises, and the government’s next steps on exit charges and pension transfers.
“It will also allow us to use a longer data set for our review, providing us with a more robust picture of how the market looks following early reactions to the pension reforms,” the FCA added.
Tom McPhail, head of retirement policy at Hargreaves Lansdown, said that market competition has led to falling costs in retirement income products, however there is also more that needs to be done to help investors engage with the decision making process and to shop around for a suitable retirement income solution.
He said: “The launch of the FAMR review in the summer and the review into pension exit charges means it does now make sense for the FCA to delay its retirement review to take account of this.”
peter.walker@ft.com
