Lowe expects providers to create annuity shopping services

clock

Banks and providers will create services to help customers shop around for annuities if reforms to the open market option (OMO) succeed, Steve Lowe, director of external affairs at Just Retirement says.

Those services will compete directly with IFAs for at-retirement business, Lowe warned, forcing intermediaries to prove the value of advice over information. Lowe says reform of the OMO to create "default shopping around" for annuities could be in place by 2013. Pension providers are obliged to inform investors they can buy an annuity from rival insurers. In September, the Association of British Insurers (ABI) said it will forbid its members from including application forms for their own annuities in at-retirement information packs. Lowe said if plans succeed to force retirees t...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on RDR

RDR

Deja vu: Are we heading back to the future on commission?

Marty, fire up the DeLorean

Tim Sargisson
clock 13 January 2016 • 3 min read
RDR

Blog: How can we shrink the advice gap?

The advice gap has been a popular topic since the Retail Distribution Review, but hasn't this gap always existed?

clock 02 November 2015 •
RDR

FCA: Concerns linger over adviser payments despite inducements ban

Regulator 'encouraged' by adviser firms' response but fears potential for bias remains in some firms

Scott Sinclair
clock 21 October 2015 •