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Question for HM Treasury

UIN 18434, tabled on 1 December 2015

To ask Mr Chancellor of the Exchequer, what discussions he has had with the Financial Conduct Authority on the conclusion of its thematic review of the annuities market as to whether consumers are being treated fairly in the current financial climate.

Answered on

4 December 2015

The Financial Conduct Authority (FCA) places a duty on the firms that they regulate to treat their customers fairly, and the FCA have wide-ranging powers of enforcement in pursuit of this objective.

The FCA’s Retirement Income Market Study, which followed on from the work of the Thematic Review of Annuities and was published in March 2015, recommended greater use of annuity comparisons to encourage greater shopping around by consumers. The FCA are currently conducting behavioural tests on options for presenting these comparisons in the most effective way, and expect to report on these findings and any proposed rule changes in 2016. In addition, the FCA’s Retirement Outcomes Review, which will be published early next year, will assess issues from the Thematic Review - including the issue of eligible consumers not purchasing enhanced annuity products.

The FCA also plan to consider consumers’ wider information needs in light of market developments following the pension freedoms.

Answered by

Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.