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Consumer Panel finds gaps in regulation of decumulation products

The Financial Services Consumer Panel has expressed concern that there are gaps in the regulation of decumulation products due to the different bodies that regulate them.

The Consumer Panel says there is a risk that regulators may not take a holistic approach to the decumulation sector and highlighted concerns over third way products.

It raised concerns over the ability of advisers to deal with the growing complexity of third way products and also warned of the misselling potential of structured products.

The provision of information, guidance and advice where there is a question about the capability of older individuals to understand the implications of the decisions that they might/might not take was also highlighted.

Panel chairman Adam Phillips says: “It is crucial that people who have worked hard to save for their retirement are able to get appropriate advice and buy financial products which are value for money to sustain them into old age.

“We will use the findings of this report to focus our work and to engage in constructive dialogue with the FSA and organisations working with people in later life.”

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  1. Julian Stevens 30th July 2009 at 4:52 pm

    Consumer Panel finds gaps in regulation of decumulation products
    It is a national scandal that those with gold plated public sector pensions either cannot or will not recognise that consigning the annuity trap to history would solve at a stroke what is, for most people, arguably the single biggest turn off to committing money into a Personal Pension. That, and the lack of inheritability of unspent funds after retirement. If those two fundamental issues were addressed, we simply wouldn’t need third way retirement income products any more. There are none so blind as those who will not see…….

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