Pensions  

FCA's plan to shake up non-workplace pensions market

  • Describe the context behind the FCA's non-workplace pensions review
  • Identify the main findings from the FCA review
  • Identify the implications for advisers
CPD
Approx.30min

This isn’t a complicated requirement. 

Adviser requirements

The adviser will have to identify the consumer objective and corresponding pathway, and put together their reasoning why their recommendation is superior.

But it is one that advisers have to be aware of and to build into their processes for drawdown recommendations from next August, and probably for Sipp recommendations in future years.

The publication of a charges league table may be another example.

Once investment pathways are launched next year there will be occasions where providers have to highlight the Money and Pensions Service’s drawdown comparator to consumers.

Likewise, all individual pension holders, whether advised or not, will be pushed towards a charges league table.

The FCA’s proposed changes to the non-workplace pensions market appear to be a fixed approach, and at the moment it seems doubtful whether the regulator will stray too far from the script it has adopted.

Financial advisers and planners need to be aware of the possible changes and what they mean for their clients and processes.

They also should be aware of the make-up of the individual pension market and which clients could benefit from switching to more modern contracts.

Rachel Vahey is a senior technical consultant at AJ Bell

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which is the odd one out in the list of concerns the FCA has about non-workplace pensions?

  2. The FCA estimates non-workplace pension providers administer:

  3. What is the role of the Independent Governance Committee?

  4. What changes are to be rolled out from the FCA's Retirement Outcomes Review? Please click on the odd one out.

  5. What is the FCA proposing that providers do under plans for the non-workplace pensions?

  6. True or false, the FCA does not believe investment pathways will deliver benefits for advised consumers. This is where non-advised are offered investment pathways to help them make a decision about what investment option to choose to meet a particular objective once they have accessed their pension.

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the context behind the FCA's non-workplace pensions review
  • Identify the main findings from the FCA review
  • Identify the implications for advisers

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