Six problems the FCA found with providers' annuity sales

Laura Miller
clock • 3 min read

Consumer research undertaken by the Financial Conduct Authority (FCA) found 40% of consumers do not exercise their option to switch and instead purchase an annuity from their existing pension provider. The regulator found six key reasons why.

  1) Documentation While some firms have better documentation than others, documentation mostly provides customers with information about shopping around. However, messages are not always consistent, even within an individual firm or throughout the entire customer journey. For example, the FCA saw good practice in one piece of documentation and poor practice in another from the same firm. Some firms need to make significant improvements to their documentation.   2) Telephone calls The FCA also saw good and poor practice across firms in telephone conversations with their custo...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Retirement Income

For the sake of future generations pensions must be invested correctly

For the sake of future generations pensions must be invested correctly

Important wealth managers and financial advisers talk to clients

Steven Levin
clock 27 January 2022 • 4 min read

Partner Insight: Have you reassessed your clients' risk appetite well enough in 2021?

Canada Life’s retirement solutions director, Nick Flynn, on the opportunity to reassess the solutions on offer to clients today

Hardeep Tawakley
clock 21 July 2021 • 2 min read

Partner Insight: How are low interest rates impacting homeowners, savers and retirees?

If last year, the biggest concern was rising interest rates, today interest rates are at their lowest level in history and the government is doing all it can to get the UK economy through the crisis. This means the outlook for inflation and interest rates has changed drastically from this time last year.

Sponsored by Architas
clock 27 October 2020 • 2 min read
Trustpilot