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<p>In June 2018, the Financial Conduct Authority (FCA) published its Retirement Outcomes
Review final report. This two-year study assessed how the retirement income market
has evolved following the introduction of pension freedoms. The review found that
drawdown charges are complex, not consistent between providers, and can vary substantially
across providers.</p><p> </p><p>In response, the FCA is introducing a range of new
measures, including a requirement for consumers entering drawdown to receive a first-year
charge figure in pounds and pence terms. The FCA has also recently consulted on introducing
a requirement for firms to provide annual information on costs and charges expressed
in pounds and pence terms.</p><p> </p><p>As the market is continuing to evolve, the
FCA did not propose introducing a charge cap at this stage. The FCA expects the market
to deliver competitive charges and is highly likely to move towards a cap if it does
not.</p><p> </p><p>The government welcomes the FCA’s work in this area, and stands
ready to work with industry and the FCA to ensure consumer demands are being met,
and any potential barriers to a thriving, competitive market can be addressed.</p>
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