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FSA is ready to compel offices to highlight Omo choice

The FSA plans to compel life companies to highlight the open market option

to policyholders three months before they have to buy an annuity, after the

regulator gets its full powers in November.

The move could see an advice bonanza as figures from the ABI show that

only 27 per cent of policyholders currently take the Omo in a market

reckoned to be worth around £5.7bn.

Some life offices currently notify customers that they do not need to buy

an annuity from them only at the point when they are about to make a


The news comes as the FSA announced a full-scale review of post-retirement

and at-retirement products, including annuities, income drawdown and equity


Spokeswoman Jackie Blyth says: “We put out guidance suggesting it is

better to let policyholders know about the open market option around three

months before the policyholder has to make their decision which is not

compulsory at the moment.

“We would want to look into requiring all life off-ices to do what some

are already doing.”

Britannic Retirement Solutions corporate development director Bob

Bullivant says: “Two out of three people are deciding to take less income

for the rest of their lives, when if they were to visit an IFA they would

see immediate benefit. We have been campaigning for this for the last year.”


Pru calls for stakeholder review

The Prudential is calling on the Government to review its stakeholder pensions in 12 to 18 months time to gauge how successful the products have been.In announcing its business results for the six months to June, chief executive Jonathon Bloomer said the take-up of the pensions would have to be looked at and changes such […]

Substance of the argument

Last week, I restated some tax planning fundamentals for couples but Ialso sounded a warning that there are some traps to be aware of, especiallywhere the objective is the transfer of earned income where one or both ofthe couple have control over the means of producing the income. Before rushing to make such transfers, it […]

Kensington links with BestAdvice

Kensington Mortgage Company has signed a six month sponsorship deal with mortgage brokers and IFAs website BestAdvice..The deal allows non-conforming lender Kensington to be the overall sponsor of the ‘Training Centre’ on the site. As part of the deal, Kensington will be asked to provide regular content for the site.Publisher Ed Tackas says: “We’re delighted […]

Scot Am mortgage club hits £7bn mark

Scottish Amicable’s mortgage club has announced it originated over £7bn worth of homeloan applications in the first six months of the year. The club, which comprises more than 30 lenders, has so far completed £4.5bn of the applications but expects this figure to rise over the coming months as the most recent applications go through. […]


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