The Financial Conduct Authority (FCA) will push ahead with its annuity market probe, and investigate if providers' profit margins are ‘high', despite industry murmurings self-regulation goes far enough.
In a paper on transparency, the FCA praised the Association of British Insurers (ABI) for taking a "proactive lead" on annuity transparency - referring to its Code of Conduct and annuity rate tables - but said there are "potential weaknesses of industry self-regulated codes". The FCA also said some industry responses to its earlier transparency discussion paper had said the ABI code went far enough. Its feedback to DP 13/1, released on Monday, said: "Without effective oversight, clear leadership and proactive enforcement against those firms who breach the rules, industry self-regulate...
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