On the go: The Financial Conduct Authority is to review the level of advice consumers are receiving from independent financial advisers on meeting their income needs in retirement.
In a statement published on January 19, the regulator said it will start contacting companies shortly as part of the review, in which it will also engage with trade bodies.
The review will also look at how firms are responding to changing consumer needs as a result of the rising cost of living, and will use the findings to inform future strategy, as well as to work out how companies are implementing the consumer duty.
The FCA said that since the introduction of pension freedom reforms in 2015, the way consumers access their retirement savings has changed.
There has been a significant shift to consumers drawing an income from pension funds that remain invested, and advice in this area can be complex.
“It is important firms understand the needs of their consumers and ensure their advisory solutions deliver consistently suitable advice,” the FCA said.
It added that, given the wider range of retirement options available, it is vital” consumers get good advice at the point they first access their pension savings and on an ongoing basis, if relevant.
The regulator had previously planned work on this topic (the Assessing Suitability Review 2), but had paused this during the pandemic due to resource constraints.
The FCA said it will publish a report setting out its findings at the end of this year.
This article first appeared on FTAdviser.com
