The Open Market Annuity Service says the Pensions Regulator’s increased focus on the open market option has driven firms to outsource their shopping around process to non-advised third-party providers.
In November, TPR issued a joint statement with pensions minister Steve Webb outlining concerns over “mixed” standards of information about the Omo and enhanced annuities provided by pension schemes.
The Open Market Annuity Service sales and marketing director Graeme Riddoch says the rise in regulatory attention has pushed corporates, employee benefit consultants and IFA firms towards the non-advised annuity sales service.
He says: “There is a big growth in annuity services that is being driven by all the regulatory activity from the FSA, the Treasury and the Pensions Regulator.
“In the corporate market, TPR is increasingly vocal about the need for trustees and employers not to let scheme members write off 20 years of investment by ending up in a bad annuity.”
The Annuity Exchange director Stuart Bayliss says: “I think non-advised sales are the future for shopping around, particularly when you are dealing with smaller pots.”