The FCA has reiterated its stance on ensuring the next generation of consumers will have the best outcomes possible in retirement.
In a speech to the Pensions Policy Institute, FCA strategy and competition executive director strategy Christopher Woolard says the “package of remedies” to help improve consumer engagement, promote competition and protect consumers will be published later this year.
This will include “wake-up packs”, which will include one page of essential information, which the regulator says has shown to increase engagement.
He adds: “We are also challenging firms to ensure they offer the products that consumers need.
“The financial services sector is constantly changing in line with the society it serves. Part of our role is being alive to these changes, and responding to them swiftly.”
He points to yesterday’s Platform Market Study, and says that while findings on the whole show competition is working, there are still many issues in the market. These include barriers to switching, namely the cost, and customers who may lose out on interest or returns through holding cash balances.
Woolard adds the aim for good retirement outcomes will be influenced by “an array of factors” from demographic shifts to economic trends that are not in the regulator’s power to control.
The FCA will publish a paper by the end of 2018 on intergenerational issues it sees, and will cover how the financial services market may respond to those issues and identify any barriers which are preventing the market from innovating and meeting changing consumer demand.