Defaqto has launched a guide on retirement planning for financial advisers to help them get up to speed with the raft of regulatory and compliance issues brought by next month’s at-retirement reforms.
The guide specifically looks at how they need to get in line with Financial Conduct Authority guidance on the new retirement reforms.
The FCA has stated that consumers lose out because of their own attitudes towards retirement and financial services in general as well as their lack of engagement in pensions and annuities, the confusing trade-offs they face, and behavioural biases that cloud decision-making.
Defaqto added that the increasing requirement to blend a range of solutions to deliver the retirement income that clients want means that advisers should consider the impact of this in their businesses.
The regulator anticipates that more complex products are likely to become available to allow consumers to take advantage of the greater flexibility on offer, with many in the industry sharing the view that this may cause problems post-April.
Gill Cardy, the firm’s wealth insight consultant, stated that understanding regulatory thinking and consumer behaviour is critical in developing best practice for the new retirement landscape from the outset.
“All industry participants, whether advisers or providers, investment managers or marketers, have a vested interest in developing the right approach to the new retirement advice landscape, be it at the product level where accurate and timely information will be vital to the due diligence process or at the advice level where blended solutions will become commonplace.”
Ms Cardy recently wrote an analysis for FTAdviser’s CPD Tracker looking at how behavioural finance issues could help shape retirement advice. To read the article and bank 30 minutes CPD, click here.