Savers who spurn the offer of free retirement guidance and help from their pension provider will be left to their own devices, the FCA says.
FCA interim head of department for savings, investments and distribution Maggie Craig says the regulator is not working on providing a “backstop” to stop people making poor decisions at retirement.
Speaking to Money Marketing, she says: “We hope people take the guidance, we will have the usual supervisory work going on keeping a very close eye on products as the develop, if people choose to not take the guidance, they choose not to take the guidance.”
Just Retirement has previously called for a “second line of defence” – tougher regulations on the information given by pension providers who also sell retirement products.
But Craig says existing rules already protect customers. She says: “We already have rules around treating customers fairly, rules around suitability, around recommendations and as things develop if we feel the rules need to change to reflect the changes that come through in the market then we will look at that.”
She adds that one of the problems of the guidance guarantee is that its impact is hard to measure but hints the Government is working on scoring the service’s success.
Craig says: “It will not always be possible to prove the guidance guarantee caused xyz to happen, it may be influential in it, but might not be the only factor.
“I’m sure the Treasury are looking very closely at developing some KPIs [key performance indicators] for the guidance guarantee even as we speak.”
During a debate at the NAPF annual conference in Liverpool, Craig also confirmed the different guidance channels will be delivered under a single brand, rather than under the TPAS or MAS brands.