Front and centre: FCA annuity probe highlights value of advice

Annuity mis-selling investigation highlights value of advice

clock

Jamie Smith-Thompson wants to rid 'endless prescriptive phrases and caveats' from the annuity sales process. Who's with him?

The Financial Conduct Authority's (FCA) investigation into mis-sold annuities between 2008 and 2014 is a welcome one. An enhanced annuity can increase a person's income by up to 60%, so many thousands of pounds of income may have been denied to some 600,000 retirees. The investigation should also come as no surprise, given that the regulator told providers to improve their communication with regards to shopping around for enhanced annuities seven years ago. In my mind, though, the FCA should also look at the wider reasons behind how this happened. One obvious answer is companies...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Retirement income advice: FCA finds 'mixed picture' among case files

Retirement income advice: FCA finds 'mixed picture' among case files

Regulator published outcome of thematic review into retirement income advice

Jenna Brown
clock 20 March 2024 • 5 min read
FCA tells IFAs to review retirement income advice processes

FCA tells IFAs to review retirement income advice processes

Comes after regulator’s thematic review of retirement income advice

Jenna Brown
clock 20 March 2024 • 2 min read
Addressing the 'regulatory timebomb' of income security

Addressing the 'regulatory timebomb' of income security

'Advisers remain concerned about the levels of withdrawals'

Kevin Carr and Matt Morris
clock 19 February 2024 • 4 min read