Annuity providers will be required to inform their customers how much they could gain from shopping around and switching provider before they purchase an annuity, the Financial Conduct Authority (FCA) has said.
The regulator plans to ask providers to build an "annuity comparator" tool, in the form of an information prompt before an annuity is purchased. The prompt will have to show the difference between the provider's own quote and the highest quote available to the consumer from all other providers on the open market. It will also contain a link helping the customer access the best quote. Firms will be required to give consumers details of whether the annuity is a single or joint life product, whether the rate of income paid by the annuity is guaranteed and the total pot that will be us...
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