Aegon has warned that a “blanket signposting” to targeted support across firms could lead to confusion for customers.
Within the amendments in the Financial Conduct Authority’s latest targeted support consultation, there is a proposal for firms to signpost to targeted support from the time the authorisation gateway opens in March.
This means giving equal prominence to targeted support whenever a firm suggests customers seek guidance or advice.
Firms will also be required to tell customers they can access information about targeted support on the MoneyHelper website.
However, Aegon said signposting from the outset could “backfire”, leaving customers confused and frustrated.
Steven Cameron, pensions director at Aegon, said: “Firms will currently be considering whether to offer Targeted Support, and if so, in which situations. They then need to obtain permissions. This means, initially, we’re likely to see Targeted Support offered by a relatively small number of firms in some simpler situations, with this hopefully expanding across more firms and situations over the coming year or years.
“A blanket signposting to targeted support in the likes of pension yearly statements from next March could simply confuse customers if they then find their pension provider doesn’t offer it and they can’t access it elsewhere. There’s also a risk that without careful explanation, they may expect targeted support to help in situations such as pensions consolidation, which the FCA has currently ruled out.”
Cameron added: “Aegon does believe that targeted support can be a valuable service, providing it complements and doesn’t cannibalise full financial advice. But it could confuse and frustrate customers if the FCA requires signposting ahead of when Targeted Support has ‘bedded in’ and become more generally available.”
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