Drawdown  

Government's investment pathway tool 'not fit for purpose'

In her response, sent yesterday (March 16), Siarkiewicz said it was important to note that the tool is not a drawdown tool and is not designed to compare all the drawdown products and investments available. 

Instead, the purpose of the tool is to allow non-advised customers who are interested in investment pathways to shop around at the point of moving into drawdown or once they are in drawdown. 

Because of this the tool only shows products that are available on the open market and direct to consumers so that users of the tool know that what is shown is available to them, Siarkiewicz said.

She added: “It is made clear in the tool that users should check with their current scheme/provider whether they offer investment pathways so that they can include them in their comparison.”

However, she admitted that there are providers who appear to meet the criteria but are not on the tool at present. 

Siarkiewicz said: “The FCA has not mandated participation in the tool. Maps engaged extensively to encourage provider participation on the tool ahead of launch and I am pleased to confirm that we are currently in the process of onboarding additional providers.”

amy.austin@ft.com

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