New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
From 1 March, Financial Conduct Authority (FCA) rules mean quote comparison templates showing like-for-like rates must be used when producing annuity illustrations. The measure is being introduced to encourage improved shopping around rates for annuity customers. However, Retirement Advantage is warning these new measures will not resolve consumer detriment issues due to "fundamental flaws in the way the process works". Factsheet: Annuity comparator It said quotes may be produced on a limited underwritten basis, or only provide standard annuity rates, which will not factor in hea...
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