The FSA is being accused of reneging its responsibilities over stakeholder
decision trees by leaving pension companies to make the final decision.
Providers believe the regulator is preparing to pass the buck by leaving
life offices to address issues such as the minimum income guarantee and
contracting out of Serps.
FSA officials have privately voiced concerns over how decision trees would
work and who would take responsibility for the advice they provide. Pension
experts believe the move would absolve the FSA of blame from a misbuying
scandal, leaving providers to take the flak.
Scottish Equitable pensions development manager Steve Cameron says: “There
are some areas where an identifiable standard or regulator-endorsed
decision tree would be very helpful. Who in the private sector would feel
comfortable setting rules for means- tested benefits and contracting out
which are both open to Government intervention?”
Maddison Monetary Management managing director Mark Howard says: “You
would think that a Government body should be taking decisive action and