The Financial Conduct Authority's (FCA) secondary annuities market consultation closes today, but early feedback warns the market is 'high-risk' and that a lack of advice could prevent it becoming a reality.
The secondary annuities market, which is due to be introduced in April 2017, would allow people who have already purchased an annuity to exchange it for a cash lump sum. But the regulator has already conceded the creation of such a market could bring "significant risk of poor outcomes for consumers". For his part, SRC Wealth Management managing director Simon Torry said he was sceptical about the viability of such a market. "I can't imagine people queueing up to sell their annuity for cash," he continued. "I expect many clients will be disappointed when they realise they will only receiv...
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