FCA clarifies adviser role in annuity prompts

To encourage consumers to shop around

Hannah Godfrey
clock • 3 min read

The Financial Conduct Authority (FCA) has confirmed it will require advisers to provide clients with an information prompt before they commit to purchasing a guaranteed annuity.

In a policy statement on 26 May, the regulator said both providers and advisers would need to flag the best quote available on the open market to their clients before the client makes the decision to proceed with purchasing an annuity. However, it would allow advisers to rely on a provider's information prompt if they thought that was appropriate. The prompts will apply to all types of annuity sale, including internal, open market and panel sales and are designed to encourage consumers to look for the best deals. The FCA said: "We consider that the requirement to provide the inform...

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