TISA’s response to ‘Implementing information prompts in the annuity market’ consultation
TISA, the investments and savings membership association, welcomes the initiative to assist the Financial Conduct Authority in ‘Implementing information prompts in the annuity market’.
Adrian Boulding, Policy Strategy Director at TISA said:
“TISA welcomes initiatives that encourage consumers to shop around for an annuity, providing the opportunity for them to make informed and suitable choices regarding their potential annuity product and provider.
“However, whilst the intention is to provide a guaranteed open market quote, it is important that this is accompanied by appropriate wording to ensure that the consumer is aware that the comparison quote may not represent the actual available annuity per annum due to underwriting considerations, and the unknown expiry date of market leading annuity rates. If the consumer is unaware, there is a risk that comparison quotes have an adverse effect, leading to negative consumer outcomes and potential disengagement with the process. There is also a danger that comparisons become a case of apples and pears as new variants of the standard annuity are launched in response to Freedom and Choice."
Ends…
For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558 / Email Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6550 / Email Sara.Neidle@newgatecomms.com
Jessica Hodson Walker- Telephone: 020 7680 6538 / EmailJessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a unique, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence based proposals to government, policy makers and regulators.
TISA’s growing membership comprises over 160 firms involved in the supply and distribution of savings and investment products and services. These members represent all sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, FinTech, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
Current themes of TISA policy work include:
• Brexit: developing proposals for government that will enable the savings and investments sector to prosper on a global scale
• Digitalisation: a digital identity for consumers of financial services, innovation, standards and data responsibilities
• ISA’s: LISA, simplification of the regime
• Retirement saving: the Auto Enrolment review, self-employed and pension tax relief
• Housing: the use of property to supplement retirement income
• Guidance: developing a framework and services to make guidance more widely available
• Education: supporting the education of young people to make them aware of the impact of finance on their life.
TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve industry effectiveness by reducing cost and risk and to enhance customer outcomes. This work currently includes: MiFID II, CASS, the UK Fund Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.
Website: www.tisa.uk.com