Retirement Outcomes Review: Proposed changes to FCA rules and guidance
LITRG has responded to a wide-ranging consultation by the Financial Conduct Authority (FCA) on the options now available to all those converting their pension pots into alternative forms of income or capital. The FCA has serious concerns that many savers are simply re-investing their pots in cash savings or placing them in drawdown schemes without taking professional advice and without much idea of the risks and opportunities of investing in stock markets.
Among the many suggestions in the paper, the FCA float the idea of drawdown schemes offering off-the-peg portfolios for the unadvised and insisting that placing pension funds in cash should be a deliberate decision, not just a default action by those with no experience of investing.
The full response to the first part of this consultation can be found here: Retirement Outcomes Review: Proposed changes to our rules and guidance – LITRG response
Paddy Millard