FCA's 'investment pathways' plan 'won't work for sophisticated investors'

Consultation alongside Retirement Outcomes Review

Hannah Godfrey
clock • 2 min read

The Financial Conduct Authority's plan to introduce drawdown investment "pathways" would not work for a traditional SIPP investor, and would be a costly, unnecessary process for providers to implement, according to Martin Tilley.

On Thursday, the FCA launched a consultation alongside its Retirement Outcomes Review, which suggested introducing investment "pathways" for drawdown retirees to make sure people are obtaining value for money. The regulator said the "pathways" would apply to the whole of the non-advised drawdown market, including drawdown provided by self-invested personal pension (SIPP) operators. According to the FCA, about 20% of non-advised drawdown is into SIPPs. It said it had seen "potential harms" were occurring in mass-market SIPPs, for example, 30% of one SIPP firm's non-advised drawdown ...

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