View more on these topics

ABI: FCA must revisit annuities review after Osborne pensions overhaul

The Association of British Insurers says the FCA will need to revisit its review of the annuity market after Chancellor George Osborne announced a fundamental overhaul of the pensions tax regime.

Osborne shocked the industry last week when he revealed plans to allow savers to take their entire pension pot as cash when they reach age 55.

ABI director of policy Huw Evans says the announcement will fundamentally change the retirement income market and require the regulator to rethink its annuities market study.

He says: “The FCA market study will need revisiting. While the FCA had line of sight on these announcements ahead of the Budget, it will now need to think through the scope, timing and purpose of its annuity market study.

“The regulator may say it wants to run in parallel with the Treasury’s changes but the rules of the game have been changed.”

Evans also suggests the reforms announced in the Budget could hamper Department for Work and Pension plans to encourage employers to set up “collective” defined contribution schemes.

He says: “Collective DC looks even more unlikely to get off the ground.

“Osborne’s move further defines the UK as an individualistic pension system, built around a customer’s right to choose their own retirement income, free from constraints.”

Evans also argues the levy to fund face-to-face guidance, proposed alongside the pension reforms, should be spread across the entire financial services industry.

Chase de Vere head of communications Patrick Connolly says: “The FCA will certainly have to stop and look again to make sure its review is appropriate because the changes announced by the Chancellor will completely alter the retirement income landscape.”

Recommended

2014-George-Osborne-Holds-Budget-Box-700.jpg
1

Providers: Osborne pensions overhaul blocked by FCA annuities stance

Insurance giants Legal & General and Aegon have warned Chancellor George Osborne his radical pension reforms risk being rendered ineffective unless the FCA relaxes its regulatory approach. Osborne announced a fundamental overhaul of pension tax rules in his Budget speech last week. The changes will mean anybody who is aged 55 or over will be […]

Steve-Webb-speaks-at-NAPF-Conference-in-2013-700.jpg

Govt to confirm pension charge cap plans today

Pensions minister Steve Webb will today outline plans to introduce minimum quality standards for automatic enrolment. The Government had originally planned to introduce the standards – including a possible 0.75 per cent cap on charges – in April this year but delayed the reforms to give businesses more time to prepare. Webb will make a […]

Tom Baigrie: ABI and providers need to get their house in order

Attending a conference last week, I listened to provider CEOs say one after another that unless “we get our house in order” the FCA would soon  adopt a tougher approach to its regulation of protection and I was struck by the contrast between the public words and points many of the same tribe recently made […]

Chris-Hannant-glances-from-a-profile-pose-700.jpg

Apfa research: One in five advisers offering simplified advice

One in five advisers are offering simplified advice services, research suggests. A survey of 250 advisers carried out by Apfa shows 21 per cent already offer simplified advice and a further 25 per cent plan to do so in future. Of those who currently offer simplified advice, 83 per cent said it is provided by […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment