FCA's 'investment pathways' plan 'won't work for sophisticated investors'

Consultation alongside Retirement Outcomes Review

Hannah Godfrey
clock • 2 min read

The Financial Conduct Authority's plan to introduce drawdown investment "pathways" would not work for a traditional SIPP investor, and would be a costly, unnecessary process for providers to implement, according to Martin Tilley.

On Thursday, the FCA launched a consultation alongside its Retirement Outcomes Review, which suggested introducing investment "pathways" for drawdown retirees to make sure people are obtaining value for money. The regulator said the "pathways" would apply to the whole of the non-advised drawdown market, including drawdown provided by self-invested personal pension (SIPP) operators. According to the FCA, about 20% of non-advised drawdown is into SIPPs. It said it had seen "potential harms" were occurring in mass-market SIPPs, for example, 30% of one SIPP firm's non-advised drawdown ...

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 Pensions

How retirement planning has transformed over the past 50 years

How retirement planning has transformed over the past 50 years

PPI report looks at the move from predictable pensions to personal responsibility

Jonathan Stapleton
clock 21 November 2024 • 3 min read
Act now: Planning for retirement is a concern for today

Act now: Planning for retirement is a concern for today

'Don't wait until tomorrow to think about retirement'

Andrew Tully
clock 20 November 2024 • 4 min read
Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Report published as Reeves delivered inaugural Mansion House speech

Jonathan Stapleton
clock 15 November 2024 • 4 min read