Press Release

PIMFA Calls Retirement Outcomes Review from FCA an Opportunity Missed for Consumer Engagement

Monday 28th January 2019

 

PIMFA, the trade association for the personal investment management and financial advice sector, is disappointed with the publication of the FCA’s Retirement Outcomes Review. Whilst many of the proposals that the FCA has advised that it is proceeding with are welcome and will almost certainly lead to better outcomes for consumers in the short term, we are concerned that the FCA’s proposals will in effect incentivise consumer disengagement beyond accumulation.

Commenting on the proposals, Simon Harrington, Senior Policy Adviser, said:

‘The FCA’s proposals strike us as an opportunity missed to fundamentally change the way in which people approach retirement. Whilst we continue to support the roll out of retirement pathways for completely disengaged savers, we are concerned that these proposals in effect incentivise savers to remain disengaged throughout the retirement process. In our original submission, we advised that the FCA was in danger in recreating the same consumer behaviour which we saw with respect to annuities and the Open Market before the introduction of pension freedoms. We do not think that this warning has been heeded.’

‘It is extremely disappointing that the FCA appears to consider retirement pathways as the first line of defence against consumer inertia. We continue to believe that more should have been done to disrupt individual inertia through the provision of financial advice. The pensions advice allowance remains an obvious tool for consumers who have never accessed advice to use in order to better understand their options and the implications of their product choices. This is a shame.’

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
  • PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena.  Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association going back for 27 years – read more.

Contact

For further information on this release or other press matters please contact:

Tolu Akisanya – PIMFA PR Manager, [email protected] +44 (0)20 7011 9869

Sheena Gillett – PIMFA Head of PR & Communications, [email protected]
+44 (0)20 7011 9869