FCA defers retirement income suitability review
7 May 2020
The FCA’s Assessing Suitability Review 2, which will review of the advice consumers receive around retirement income, will now not take place until at least Q1 0r Q2 2021 but even then, these timings are described as ‘tentative’. The reason for the delay was given as the impact of Covid-19.
In a regulatory update published on 7 May, the regulator announced that three of its four reviews into pensions and retirement income, were being deferred.
The other two were the Fourth thematic review into DB-DC pension transfer advice (DB4) – data. This collected data from firms on the size and value of the Defined Benefit (DB) pension advice market. And the Independent Governance Committees Effectiveness, set to review the effectiveness of independent governance committees at a sample of firms.
However, the Fourth Thematic Review into DB-DC pension transfer advice (DB4) – supervisory action, is continuing throughout 2020. This is focussed on supervisory and enforcement action on DB-DC pension transfer advice aimed at preventing unsuitable transfers out of DB schemes.
All of the reviews are concerned with raising conduct and service standards within the sector.
The date for the implementation of rules on platform transfers has also been deferred, too February 2021.
FCA interim chief executive and Forum co-chair Christopher Woolard (pictured), said: “At any time it’s important for regulators to do what they can to help firms plan, but it’s all the more vital in difficult times like these.”
He added that financial services firms need to know what regulatory work is coming down the track, and the publication of this information “will give them the opportunity and time to prepare. It also shows the need for further careful planning by the Forum members for the autumn.”
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