On the go: The Financial Conduct Authority is delaying the introduction of investment pathways in drawdown for six months, as it cuts non-critical work amid the coronavirus pandemic.
The new rules, which will see providers introducing investment solutions tailored to four broad retirement income behaviours, will now be introduced in February 2021, the FCA announced on Tuesday.
The regulator found approximately one in three consumers who have gone into drawdown recently are unaware of where their money is being invested, leading to poor consumer outcomes.
Taking this reality into account, the watchdog published proposals in January 2019 to introduce investment pathways, which were due to come into force in April 2020.
Some providers have welcomed the delay, as it will allow them to “focus efforts on more pressing priorities”, said Steven Cameron, pensions director at Aegon.
He noted that the extension will also give providers time to understand if consumer behaviour in terms of investment choice, as well as their income levels, “will be influenced in the short or longer term by current events”.
“This might require some changes to the design of pathways,” he added.
