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Advisers prefer to use drawdown specialists

Leading IFAs oppose income drawdown becoming a permitted activity as they favour referring clients to drawdown specialists.

Sofa conference delegates were asked whether they bel-ieved advisers discussing inc-ome drawdown should take the K10 exam.

But while some IFAs saw the move as inevitable, others argued that drawdown cannot be considered in isolation from more general retirement planning and annuities. Some argued that the higher-risk profile and the high levels of investment knowledge req-uired make drawdown an obv-ious candidate for being made a permitted activity.

Instead, it is expected that further partnerships with specialists and non-specialists are sought. The idea of accredited specialists was also mooted.

Syndaxi Financial planning director Robert Reid said: “I am very against the idea of product-led permitted activities. It goes against the whole grain of financial advice and progressively moves towards generic advice. It causes more problems then it solves.”

Intelligent Pensions managing director Steve Patterson said: “There are practical problems in making income drawdown permitted as it follows that annuity advice ought to be permitted, otherwise it is presented as if annuities are a risk-free. The FSA will exercise controls on the market and are likely to move more towards the ideas of accredited specialists.”

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