Personal Pension  

It is still too early for new pension products: FCA

It is still too early for new pension products: FCA

Pension providers have focused on variations on existing services rather than product innovation in a bid to be ready for the incoming changes, David Geale, the FCA’s director of policy has said.

Speaking at the inaugural Retirement Review conference in Haberdashers’ Hall, London, Mr Geale said: “It is still relatively early days. What we have seen so far is a variation on an existing thing rather than anything new.

“We do expect that to develop over time.”

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He said the FCA did not have a particular suite of retirement income products that it wanted to see being developed in response to the pension changes.

Mr Geale told attendees: “We are looking for a competitive market”, but warned that greater choice for consumers could lead to an increase in risk and the need for guidance or advice.

He said: “It is fairly clear that people will still need help. The greater amount of choice they have, the greater amount of risks there are, the more help they will need.”

Mr Geale also sought to reassure people that regulators and the government were working together closely in preparation for the reforms.

He said: “In terms of the DWP and the Treasury, I think we are talking to them and The Pensions Regulator daily, on a whole range of issues but largely about the retirement reforms.

“We are working very closely with the government on these particular issues.”