Annuity 'sales conduct' under scrutiny as FCA investigation continues

The conduct of pension providers' annuity sales teams will form a large part of the Financial Conduct Authority's (FCA's) continuing investigation into the retirement income market.

The regulator's thematic review, released today, found 80% of consumers who stick with their original pension provider for a standard annuity miss out on about £1,500. The amount was significantly higher for people who qualify for an enhanced annuity. The regulator will now conduct a study to assess competition in the market and gain an understanding of why consumers do not shop around. It will also undertake further supervisory work focusing on how pension provider sales teams "conduct themselves when selling annuities to existing customers". This will include retention teams who'...