© Reuters. FILE PHOTO: Signage is seen for the FCA (Financial Conduct Authority), the UK’s financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo
LONDON (Reuters) – Britain’s Financial Conduct Authority (FCA) has written to financial advisors to demand reviews on how they provide retirement income advice, following an assessment of good practice in the industry in line with its Consumer Duty rules.
The watchdog said on Wednesday it had identified some examples where firms were not taking account of the needs of their customers, or providing the right information.
Most files assessed by the FCA showed advice provided was suitable, but in some instances, the recommendations resulted in consumers losing guarantees or incurring unnecessary charges, the regulator said.
“Decisions for consumers approaching retirement are complex, with the potential for risk,” said Sarah Pritchard, the FCA’s Executive Director of Markets and International.
“Some firms are getting this right and making a real difference to their customers. However, others are not even getting the basics right and putting their customers’ futures at risk,” she said.