Apfa urges Govt to delay secondary annuity market

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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.”