Vince Smith-Hughes: Marrying Consumer Duty and client income

Consumer Duty rules

clock • 8 min read

Most advice firms will already have robust processes in place to deal with drawdown client risk, writes Vince Smith-Hughes. The next challenge will be how to marry these processes with the FCA's Consumer Duty

With the introduction of pensions freedom it's clear that many people have turned to drawdown as their retirement income vehicle of choice. Since the their first announcement, annuity sales are around a third of where they were previously, while income drawdown sales are around four times greater. Many of these customers will of course be advised. But what about the forthcoming Consumer Duty rules and guidance? How will that affect income drawdown?   All regulated firms will need to consider these new rules in detail. As a brief reminder, we are due to see the final rules by late July...

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