It'll cost you: Can providers justify income drawdown charges?

Providers will need to make strong case to keep variety of charges

clock

The array of drawdown charges currently levied on clients is under increased FCA scrutiny post-pension freedom, writes Natanje Holt. Providers will have to make a strong case to keep them all...

Since Pension Freedom Day on 6 April 2015, the government and Financial Conduct Authority (FCA) have been monitoring the retirement market with increasing intensity. They want to flush out and stamp on any undesirable, unintended consequences of this seismic change in the at-retirement market. Up until recently much of the attention has focused on the volume of over 55s cashing out completely and levels of access to advice (or guidance). In the last week, there has been a detectable switch of focus to the new decumulation option of choice - income drawdown. The FCA's desire to k...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Advisers revisit processes after FCA's retirement income review

Advisers revisit processes after FCA's retirement income review

Thematic Review of Retirement Income Advice released in March

Jenna Brown
clock 16 September 2024 • 2 min read
Two firms declared in default by FSCS over pensions advice

Two firms declared in default by FSCS over pensions advice

Both Oakwood Financial Management and GO IFA are no longer trading

Isabel Baxter
clock 11 April 2024 • 1 min read
FCA lays out 2024/25 fees/levies proposals; £755m planned spend

FCA lays out 2024/25 fees/levies proposals; £755m planned spend

‘We recognise that firms continue to face inflationary pressures’

Hope Coumbe
clock 09 April 2024 • 4 min read