Pensioners will be required to take “appropriate financial advice” before selling “higher value” annuities, the Government has confirmed.
In the March Budget the Treasury launched a consultation on creating a secondary annuity market by 2017.
It suggested an advice requirement to protect consumers when they give up a guaranteed income for cash.
In an announcement published today the Government confirmed it is tabling an amendment through the Bank of England and Financial Services Bill that would make advice mandatory.
However, it has not said at what level the threshold would be set.
This will be included in secondary legislation and the Government has previously indicated the £30,000 threshold used for the transfer of safeguarded benefits would be mirrored.
The Treasury will also determine what type of annuities are in scope, how the the threshold should be calculated and whether an individuals’ circumstances should be taken into account.
The response to the consultation is expected to be published within days.
Earlier today, Money Marketing revealed the Government has decided to allow private sector firms to run secondary annuity brokers.