Annuity firms must do more to ensure the fair treatment of pension customers, an FSA review into the Open Market Option (OMO) says.
The regulator’s study found the quality of some annuity literature available to consumers was lacking and delays in the transfer of annuity funds too frequent. The FSA says the review links in to its broader work on TCF, adding the findings show many pension firms must make improvements to their literature and processes by its December 2008 TCF deadline. It says it will scrutinise how the industry has responded, and consider taking “direct action” where change is not evident. Sarah Wilson, director of TCF and insurance sector leader at the FSA, says: “The decision on whether to buy an an...
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