Thematic review of retirement income advice

The FCA has announced that it will shortly be undertaking a thematic review to assess the advice consumers are receiving on meeting their income needs in retirement.



Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused as a reaction to Covid but the Regulator believes that it is now appropriate to examine how the retirement income advice market is functioning, especially in light of the current cost of living difficulties being experienced by many. Accordingly, the review will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.

The review will also link in to the lifetime mortgages work the FCA committed to in the 2022/23 Business Plan in order to gain a clearer understanding of outcomes for consumers in later life.

Since 2015, there has been a significant shift to consumers drawing an income from pension funds which remain invested. Given the wider range of retirement options available, it is clearly important that clients get good advice at the point they first access their pension savings and, where relevant, on an ongoing basis.

The findings from the review will be used to assess whether any new strategy or rules are required.

And Consumer Duty seems to be never far away from a mention recently. Needless to say, the FCA also considers that the findings will be an important indicator of how firms are implementing the Consumer Duty.

Next steps

The review will commence in Q1 2023. Firms selected for the review can expect to be contacted early in 2023.

The report back with findings should be published in Q4 2023.

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

For information.

Action Required By You

For information.
SUIT - Beautiful Reports
SUIT - Complete Control
SUIT - Comp confidence
previous arrow
next arrow

About the Author

Shirley has a wealth of industry experience and proven track record of working closely with firms to deliver high quality compliance and T&C solutions across a wide range of regulatory disciplines.

Contact Us

Brought to you by

Explore more articles in this category

Other articles that you might be interested in