Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
The Financial Reporting Council (FRC) has revealed it is undertaking a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement.
It said the review is a piece of discovery work to explore how financial adviser firms are delivering retirement income advice and assess the quality of outcomes consumers are getting.
The watchdog said it comes as the introduction of the Government’s pension freedom reforms has changed the way consumers access their retirement savings.
Given the wider range of retirement options available, it added it is “vital that consumers get good advice at the point they first access their pension savings and, where relevant, on an ongoing basis”.
Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on the FRC’s response to Covid.
The new thematic review will examine how the retirement income advice market is functioning and it will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.
The FRC said: “Since 2015, there has been a significant shift to consumers drawing an income from pension funds which remain invested. Advice in this area can be complex, so it is important firms understand the needs of their consumers and ensure their advisory solutions deliver consistently suitable advice.
“…We will use the findings to help inform our future strategy for the sector. The results will also be an important indicator of how firms are implementing the Consumer Duty.”
The review will begin in Q1 2023 and aim to publish a report setting out its findings in Q4 2023.
