FSA rules on annuities

Regulator forces pension providers to inform consumers of open market option

The FSA is to force all product providers to inform pension owners of the availability of the open market option so consumers are better informed when purchasing an annuity. At the same time, the regulator is stressing that groups must inform endowment policyholders of the second-hand market available for these policies, which could be more beneficial than surrendering the policy. In its proposals issued last week, the FSA has said policyholders of individual pensions must be informed when they approach retirement that their annuity may be purchased from a life office other than their ...