FCA: ‘No Evidence’ of Widespread Annuity Mis-Selling

FCA asks a ‘small number’ of insurers to review annuity sales after comprehensive review of this sector

Emma Simon 14 October, 2016 | 1:10PM
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There is ‘no evidence’ that pension providers systematically mis-sold annuities between May 2008 and April 2015, according to an investigation by the Financial Conduct Authority (FCA).

However, the regulator said it was concerned about “particularly poor behaviour” at a handful of providers. These firms are now required to review all annuity sales and offer compensation where appropriate. They have also been referred to the regulator’s enforcement division and could face hefty fines.

Annuities are bought with a pension fund and pay a fixed income for life.  As part of this ‘thematic review’ the FCA reviewed more than 1,200 annuity sales to see whether firms provided customers with adequate information about their options at retirement. This covered around two-thirds of the annuity market.

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About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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