FCA publications PS19/1 & CP19/5

Two significant FCA publications issued 28/01/2019. 

PS19/1 covers the Retirement Outcomes Review. The theme is more frequent consumer information, provided sooner – from age 50 onwards. Generic retirement risk warnings are to accompany ‘wake-up’ packs from age 55. Key features illustrations for drawdown will be presented in real, rather than nominal terms and will include a ‘summary’ page of key information. Prima facie there is nothing too contentious here although pension operators will need to start planning for the partial implementation in November 2019, with KFI changes following in April 2020. A more detailed update for Enhance clients will follow in due course. Link to PS19/1 here:

CP19/5 is a further consultation on ‘investment pathways’ for those with non-advised/cash-based crystallised benefits. Whilst there is a proposed easement for smaller pension providers in having to offer an investment pathway, as always the devil is in the detail. The opportunity to respond is open until 5 April 2019. This feels like innovative work on the part of the FCA where feedback could really influence the final implementation. Link to CP19/5 here: