Drawdown providers could be required to give customers charges in pounds and pence following an in-depth review of the retirement market by the Financial Conduct Authority (FCA) revealed complexity makes it hard to compare products.
The regulator's Retirement Outcomes Review, released today, discovered up to 44 charges can be linked to a drawdown product, some of which were "complex and opaque". The review looked at the operation of the post-pension freedom retirement market which has seen a surge in the popularity of drawdown over annuities. The regulator focused on non-advised clients and found some were at risk of bad outcomes. In one of several proposed solutions, it said providers should give clients clearer insight into charges laid out in pounds and pence. Standard charges for non-advised drawdown vary ...
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