Trade Bodies 

ABI calls on FCA to act on drawdown advice

ABI calls on FCA to act on drawdown advice

Drawdown advice is vital and this is something the regulator should be taking into account, according to Rob Yuille, manager for retirement policy at the Association of British Insurers

Mr Yuille said: "It is the right thing to do to look at the market in terms of choosing products and shopping around, especially for people with small pots and for those entering drawdown.

"The Financial Conduct Authority (FCA) should be taking into account that more advice is needed on drawdown.

"There are so many factors to consider with drawdown that are not there with annuities, such as customer service, the tools used, fund choices, access to a range of funds, whether there is a guarantee involved.

"Price is also important, value for money is important, but it should not be the main driver when it comes to drawdown. We want to get to a position where everyone is clear about what customers should be getting and what are the most appropriate drawdown choices."

Speaking at the FTAdviser Retirement Freedoms Forum in Harrogate, Mr Yuille also told delegates there needed to be a more concerted industry effort to protect those clients who may be vulnerable, whether they are suffering mental health issues, or dementia or needing a power of attorney.

Mr Yuille told the audience: "Andrew Bailey, head of the FCA, has already said he is looking into this, and today (15 September) the regulator put out an update to its discussion paper on ageing, on how we can help customers."

The ABI and BIBA, the general insurance trade body, have already done a joint code to help vulnerable customers.