Scottish Life is developing an income drawdown package to better support advisers setting up the product ahead of potential Financial Services Authority (FSA) regulation.
The provider said its suite of tools - to be launched in early autumn - was being developed ahead of likely regulation in the area, which has come under recent criticism for potential mis-selling.
Investment marketing manager Lorna Blyth said giving advisers more support in the area was important as the FSA was likely to regulate in the area as a result of its questionnaire on the topic, sent out to advisers earlier in the year.
Blyth added Scottish Life saw income drawdown as a growth area for advisers - but said the process of set up was complex and advice intensive.
She said the package would help advisers better explain the risks and rewards of drawdown to clients and support them should any regulation come into force. And give them piece of mind as it would provide an audit trail to deal with potential future regulation.
Blyth also said the advent of auto-enrolment would cut new personal pension business but the at-retirement market was expected to grow 10% each year for the next five years - meaning income drawdown and similar products would give advisers the opportunity to add value to their business.
"Advisers may be nervous about retirement drawdown in advance of regulation. From our point of view, we want to give them something that can help manage those concerns."
She also said more support in the area would open up drawdown to small pot sizes.
Blyth said advisers were, at present, reluctant to advise on pots around £100,000 because of the perceived risk of mis-selling. However, she added if the process was easier and more transparent the value of prospective drawdown pots could be lower.
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