TISA: secondary annuity market needs a statutory override
TISA, the financial services membership association, is recommending the introduction of a statutory override and allowing existing annuity providers to ‘buy back’ annuities. The recommendations form part of its response to the HMT/DWP ‘Creating a secondary annuity market’ consultation.
Jeffrey Mushens, Technical Director at TISA said: “The creation of a secondary annuity market is a natural progression of the pension freedoms already introduced. We support it in principle and believe that the instinct to trust people with their own money is a good one.
“However, we feel that a statutory override is necessary in order to make the reforms available to as many consumers as possible. This approach would prevent these specific reforms from exacerbating the reported consumer frustration of being unable to access the already introduced freedom and choice at retirement, where some schemes have chosen not to allow them. Unlike the reforms introduced in April 2015, annuitants are unable to transfer to another provider and so would have no way of accessing these freedoms without a statutory override.
“We also highlight that in order to encourage competition and consumer choice existing annuity providers should be allowed to ‘buy back’ annuities, that regulated advice should not be mandatory but that consumers should first receive relevant tailored guidance (which may result in a decision to take advice) and that FSCS protection should remain in place for annuities that have been sold on.”
The full response is available on the TISA website: www.tisa.uk.com
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Issued on behalf of TISA by Newgate Communications, for further information please contact:
Alistair Kellie – Telephone: 020 7680 6558 / Email alistair.kellie@newgatecomms.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. We represent the interests of over 147 member firms involved in the supply and distribution of savings and investment products and services.
TISA has a highly successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for consumers. Policy and regulation continues to be the major focus for our members with regard to corporate responsibility.
TISA and its members’ remit is evolving into a clearer focus on pro-active consultation in the regulatory world in order to influence policy and associated regulation before its creation, rather than reacting to issued policy directives. This will help to ensure a more considered policy creation from the authorities. Website: www.tisa.uk.com