View more on these topics

ABI initiative to encourage Omo a long way short, says McPhail

Pension Income Choice Association chairman Tom McPhail says the Association of British Insurers’ code of conduct for annuity providers falls a “long way short” of Pica’s goal of making the open market option the default.

This week, the ABI announced it is introducing a compulsory code of conduct forcing providers to remove the annuity application form in the communications they send to customers.

The initiative has been announced as part of ongoing efforts by the industry and the Government to increase the number of people who shop around at retirement.

The move will stop consumers automatically rolling their savings into an annuity with their current provider. The trade body says the new code will also ensure consumers receive all the information they need to shop around in one place.

ABI director of life and savings Maggie Craig says: “The Association of British Insurers believes all consumers should shop around to maximise the income from their pension savings.

“However, not enough people shop around currently. This new industry initiative has been developed to make a significant difference to people’s retirement outcomes.”

But McPhail says Pica will continue to lobby for shopping around to be the default option at retirement.

He says: “What the ABI has proposed falls a long way short of what we would regard as an acceptable outcome. We will continue to work with the DWP, the Treasury and the ABI to put together a more far-reaching solution.”

Radcliffe & Newlands chartered financial planner Mel Kenny says: “This initiative is a step forward. I have seen some retirement option packs that make only a fleeting reference to shopping around at retirement.”



Dampier: Markets will lose patience over Euro crisis

It has become impossible to look at the prospects for stockmarkets now without considering some kind of resolution to the euro crisis. There are problems across the pond as well but at least the Americans have a currency they are able to readily devalue. European politicians seem content to kick the can further down the […]


Publicity power for enforcement action criticised

Financial services lawyers have labelled the FSA “irresponsible” and “unaccountable” as it looks to toughen up new powers on publicising ongoing enforcement action. The draft financial services bill, published in June, allows the Financial Conduct Authority to publicise warning notices against firms and individuals but requires the FCA to notify the subject of the warning […]

FTSE 100 rises following early losses

The FTSE 100 has bounced back into positive territory after falling below 5,000 in early trades on Monday, At 10.28am, the blue-chip index currently stands at 5114.73, a rise of almost 1 per cent, with banks leading the bounce back. Shares have also risen across Europe with the German Dax up 2.9 per cent and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm