Results of the FSA's thematic work on open market options (OMO) is a step in the right direction, but the message must be stronger if consumers are to benefit from the highest level of retirement under the OMO, according to Jason Walker, senior manager at AWD Chase de Vere.
Walker says literature from life companies is unclear regarding the OMO. “Consumers should be in no doubt that they have a choice of annuity providers and by how much it could increase their retirement income," he says. One option is to force life companies to include open market rates on the quote allowing clients to compare differences in income, he says. “At the very least the OMO option should be up front and in bold. Frankly some documentation is so unclear I doubt whether it would be regarded as meeting the FSA’s Treating Customers Fairly (TCF) initiative.” Walker believes annuit...
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