The Financial Conduct Authority has this afternoon published guidance for firms following the changes to pension legislation announced in Budget 2014.
The regulator told firms they will need to make changes to their operational processes and procedures.
They will also need to consider how to treat those customers who are making a decision about their retirement income in the coming year.
This guidance provides clarity on the FCA's expectations of firms during the interim period from Budget 2014 to April 2015 when many of the Budget changes come into force.
{desktop}{/desktop}{mobile}{/mobile}The FCA said it wanted to ensure that customers were making informed decisions about their retirement in light of the Budget changes and so has issued guidance to firms on what they should consider in communication with different customer groups, including:
· those customers who applied for an annuity shortly before the Budget announcements who are still in the cancellation period
· those currently considering their retirement options
· customers approaching retirement
· those who applied for income drawdown shortly before the Budget, and
· those customers using income drawdown to provide for retirement income who are still in the cancellation period.
The guidance has been published online
here.
The guidance is relevant to:
· Pension providers (both insurers and SIPP operators)
· Annuity providers
· Income drawdown providers
· Financial advisers providing retirement income advice, and
· Intermediaries selling annuities and income drawdown products on a non-advised basis (including comparison websites, brokers, and investment platforms).
