FCA Proposes No Advice Targeted Guidance Support for Pensions

Under much criticism, the Financial Conduct Authority published a report suggesting financial firms should develop ‘targeted support” that does not cross into the ‘regulated advice’ sector.

The idea is that the ‘advice gap’ where people receive little or no help with pension planning unless they can afford to pay for a take regulated advice.

The FCA wants the industry to develop systems to deliver Targeted Support on defined contribution (investment linked) pensions:

• At no cost or very low cost.
• Still comply with FCA Consumer Duties requiring firms to offer value for money.
• Firms will still be liable for negligence in any targeted supoort or guidance it offers.

Comment

Yet again, a total ‘fudge’ by the FCA.  Expecting firms to develop systens that educate conumers to enbable them to make informed decisions in saving during the ‘build up’ stage of pension funds and then when making ‘at retirement’ decisions at hude expense, but not be able to charge much, if anything and then be liable for what they output.

As it happens, the directors at this firm have been working oin such a solution for a number of years at great costs and it is the intention to offer ‘signposted’ guidance at little cost to the user but it is not easy given the constant meddling by successive governments on pensions, allowances, inheritance tax planning, retirement options and much more.

Education is of course the key but we suggest this should start at school and be developed for each band decade as we age:

• Financial edustaion for 3-10 year olds.
• Financial education for 10-18 year olds.
• Financial guidance for 18-30 year olds.
• Financial guidance for 30-40 year olds.
• Financial guidance for 40-50 year olds.
• Pre-retirement guidance for 50-60 year olds.
• At-retirement guidance for 60-70 year olds.