Pension Open Market Option (OMO) Failure
Published / Last Updated on 18/06/2008
Pension Open Market Option (OMO) Failure
The FSA has warned life insurance companies that open market option standards for annuities must improve after uncovering shocking evidence that almost 40 per cent of their consumer correspondence fails to meet regulatory requirements.
A report shows that 38 per cent of all customer Omo material from 55 firms, failed to give sufficiently clear information to enable a customer to make an informed decision about retirement options.
Our view
There is a conflict of interest here. Why would an insurance company actively seek to encourage a client to move their pension money away to a competitor?
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