Back to basics: The FCA has written to chief execs, asking them to review and improve retirement income advice services
The City watchdog has accused retirement advice firms of ‘not even getting the basics right’ in a scathing report that found some put clients’ futures at risk.
The Financial Conduct Authority (FCA) has written to chief executives, asking them to review and improve retirement income advice services.
It said some fail to provide the right information for customers to make informed decisions on their futures, and made errors on basic calculations of future income.
Sarah Pritchard, at the FCA, said some firms make a real difference to clients, adding: ‘Others are not even getting the basics right, putting customers’ futures at risk.’
In extreme cases, poor advice has caused clients to lose valuable guarantees and incur unnecessary charges.
In a letter to bosses, Lucy Castledine, director for consumer investments at the FCA, wrote: ‘Some firms may not be meeting the needs of their customers, potentially leading to poor outcomes.’
A review of responses from 1,000 firms praised some advisers but said others failed to consider a sustainable income for retirement.
Rebecca O’Connor, of pension firm PensionBee, said: ‘If they are not going to help you be better off than you would be otherwise, what are you paying for?
‘One of the moments in people’s lives when an independent adviser should really shine is that point when you’re about to retire.’