FCA thematic review of retirement income advice
What has happened?
In January 2023, the FCA announced that it will be undertaking a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement. This review is a piece of discovery work to explore how financial adviser firms are delivering retirement income advice and to assess the quality of outcomes consumers are getting.
It will begin the review in Q1 2023 and will aim to publish a report setting out its findings in Q4 2023.
Firms selected for the review can expect to be contacted early in 2023.
What are the key points?
Since 2015, there has been a significant shift to consumers drawing an income from pension funds that remain invested. Advice in this area can be complex, so it is important that firms understand the needs of their consumers and ensure their advisory solutions deliver consistently suitable advice.
Previously planned FCA work on this topic (known as the ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on the FCA’s response to Covid. This thematic review will examine how the retirement income advice market is functioning and it will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.
The FCA will link this review to the lifetime mortgages work that it committed to in its 2022/23 Business Plan, to get a clearer understanding of outcomes for consumers in later life.
The FCA will use the findings to help inform its future strategy for the sector and the results will also be an important indicator of how firms are implementing the Consumer Duty.
How can we help you?
Thistle Initiatives has supported brokers to financial advisors for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as and when our team of specialists can serve as your right hand in a meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
We can advise firms on the assessment of suitability in all advice areas and can carry out reviews of their back books of pensions advice where required.
Are you looking for help with your retirement advice arrangements, the Consumer Duty for advisers, or compliance, or regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.