Chartwell Investment Managers is throwing its weight behind the move of the Association of British In...
Chartwell says the 'Statement of Good Practice' should benefit the consumer looking for an annuity, particularly given that once signed for it is almost impossible to change annuity providers without facing prohibitive financial penalties.
The development of minimum standards is being supported by the FSA, Chartwell notes, but says it would like to see the scheme upgraded to a compulsory one rather than remaining a voluntary one as at present.
At the very lease, Chartwell adds, customers should be allowed to excercise the 'Open Market Option' in order to determing the best annuity for their situation.
This could help avoid bad performers, which can make a difference of up to 10% in the level of income generated by an annuity.
"Self-regulation has proved to be difficult to maintain in the past, and if companies do not enter into the spirit of these recommendations, then the only loser will be the customer," Chartwell says.
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