AJ Bell chief warns FCA about dangers of investment pathways reforms

Could lead to claims from 'ambulance-chasing lawyers'

AJ Bell chief executive Andy Bell has warned the Financial Conduct Authority (FCA) that the proposed investment pathways reform could make savers think they have been advised when they have not, leading to a barrage of claims from ambulance-chasing lawyers.

In a letter addressed to the newly appointed FCA chief executive Nikhil Rathi, Bell said the investment pathways proposals were "fundamentally flawed" and could end up causing long-term consumer damage. Under the proposed rules, people who enter drawdown or transfer funds to a new drawdown account will need to be offered ready-made investment pathways based on their answers to basic questions about how they plan to spend their retirement pot. Regulation Blog: Deadline extended for fund groups to meet ESG disclosure requirements Pathways will also need to be offered to non-advised d...