The FCA will publish proposals this week to simplify pension advice rules with the aim of expanding access for consumers while reducing complexity for firms.
The news was revealed on Friday by Nikhil Rathi, chief executive of the FCA.
in a speech at the JP Morgan Pensions and Savings Symposium, he said the regulator will be proposing to simplify rules, “for those wanting more personalised advice.”
Mr Rathi said: “Consumer protection will always be central to our approach at the FCA. But protection doesn’t mean insulating people from every decision.”
He said the FCA’s approach was “about empowering customers to make choices about what is, ultimately, their money. That is why we are introducing reforms like Targeted Support, and consulting on simplified advice.”
He said the regulator’s “goal is not a ‘risk-free’ system, but a ‘risk-aware’ one.”
He said the FCA has launched a market study into lifetime mortgages because “products like lifetime mortgages and retirement interest-only mortgages – currently more niche - may become more prominent parts of the retirement landscape.”
Mr Rathi said: “We’ll be looking at whether the later life mortgage market can and will develop in a way that meets evolving needs, including what changes might be required to make competition more effective for consumers.
“At the same time, exploring how consumers might be better supported to access more holistic advice and guidance on later life lending.”
He also mentioned the FCA’s work on pension transfers. Mr Rathi said: “As people re-connect with lost pension pots, we should expect more interest in consolidation and transfers. Making it particularly important this part of the market is functioning well.”
He said the challenge is not simply providing consumers with information; it’s providing the right information in a way that supports understanding of long-term consequences.
He said: "We have set out some proposals on transfers, to be tested. But nothing is set in stone; we know we have some re- thinking to do, and welcome alternative ideas.”