View more on these topics

Apfa urges Govt to delay secondary annuity market

Chris-Hannant-poses-side-frontal-in-2013.jpg

Apfa is calling on the Treasury and FCA to pause plans to launch the secondary annuity market.

The adviser trade body says the “vast majority” of financial advisers do not have appetite to work in the market and urges the Government to call a halt while there is “upheaval and uncertainty in the financial markets”.

Under the current timetable pensioners will be able sell on their annuities from April 2017.

The threshold above which savers will be required to take advice before selling their annuities has not yet been set.

In April Money Marketing warned the market would be held back by a lack of demand from advisers.

Apfa director general Chris Hannant says: “Financial advisers, their clients and the public have a lot on their plate to contend with over the next few years.

“I have concerns about the workability of the proposals as the vast majority of financial advisers I have spoken have said they just aren’t interested. There is therefore the risk of a mismatch of supply and demand, particularly given the creation of a mandatory advice requirement for those whose annuities are valued above a certain threshold.

“The Treasury and the FCA need to recognise that the time is therefore not right to push ahead with their plans for creating a new secondary annuities market.

“I believe the correct course of action is to shelve these plans until advisers and their clients have had the time to digest and work through the current market uncertainty.”

Recommended

Andrew Tully: Avoiding secondary annuity regrets

In less than a year’s time, people will have the ability to trade in their annuity for a lump sum. However, there remains much uncertainty and, with no less than four consultations currently running, it is unlikely the final details will emerge before the autumn. This gives scant time to build the infrastructure and little […]

FCA interior logo 620x430
2

FCA leaves secondary annuity questions unanswered 

Plans for the second-hand annuity market unveiled today lack crucial details just a year before the reforms are due to launch. The FCA and the Treasury both published documents outlining how they expect a second-hand annuity market to function from April 2017. However, questions over the advice requirement, how providers will keep track of customer deaths […]

FCA logo new 3 620x430
6

FCA to ban commission for secondary annuity market

The FCA says brokers working in the secondary annuity market will not be allowed to charge commission. In a consultation setting out rules to govern the secondary annuity market, published today, the FCA says people selling on their annuities will be required to take “appropriate advice” above a threshold. However the regulator has not defined […]

Japan: the Land of the Rising Dividends

By George Boyd-Bowman, Fund Manager at Neptune Many Western investors have long bemoaned the lack of a true dividend culture in Japan, claiming the corporate culture is not tilted in favour of shareholders. Yet today, in the Land of the Rising Sun, we see a fresh impetus to focus on shareholder returns, which is leading […]

Get your New Year off to a flying start

Ross Jackson, Senior Marketing Manager There’s no denying that these days we expect things quickly. You might have noticed it first-hand during the flurry and rush of the Christmas period. The fact is that in a world of smartphones, social media and click and collect, most clients expect to get an instant response and a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. If the “vast majority” of financial advisers have no appetite to work in the market, why is APFA bothering to lobby the government on the issue? The whole idea will be stillborn.

Leave a comment