FSA to investigate £11bn annuity market

clock

The annuity market will come under investigation by the Financial Services Authority (FSA) later today when a major review is announced.

The Daily Telegraph reports the watchdog is to launch an inquiry into the value pensioners receive when buying an annuity with their pension pot. Reports indicate the FSA's probe of the £11bn annuity market will examine the pricing of annuities and how they are advertised to savers. Politicials and industry groups have raised concerns about the failure to use the open market option (OMO), where consumers shop around for an annuity instead of taking the rate automatically offered to them by their pension provider. The first phase of the investigation will focus on pricing. Phase tw...

To continue reading this article...

Join Professional Adviser for free

  • 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 Income

Targeted support: FCA rules out specific annuity suggestions

Targeted support: FCA rules out specific annuity suggestions

Firms must signpost consumers to MoneyHelper’s annuities comparison tool

Jenna Brown
clock 30 June 2025 • 3 min read
How annuity underwriting needs to change to meet Consumer Duty

How annuity underwriting needs to change to meet Consumer Duty

'This is an industry systematically delivering poor outcomes'

Andrew Gething
clock 24 June 2025 • 4 min read
Annuities in a post-freedoms world: The need for rebranding and repositioning

Annuities in a post-freedoms world: The need for rebranding and repositioning

‘The challenges facing today’s retirees are intensifying’

Steve Butler
clock 22 May 2025 • 4 min read