This policy statement sets out our final rules which require firms to inform consumers how much they could gain from shopping around and switching provider, before they buy an annuity.
In November 2016 we published CP16/37: Implementing information prompts in the annuity market (PDF) seeking views on proposed amendments to our rules in relation to the purchase of products that provide consumers with guaranteed income in retirement (pension annuities). The rules require firms to inform consumers how much they could gain from shopping around and switching provider before a potential annuity purchase.
This Policy Statement sets out our response to the feedback received to CP16/37 and sets out our final rules.
Who this applies to
Anyone with an interest in pensions and retirement issues, including:
- providers of retirement income products and other financial services products that play a role in consumers’ retirement planning
- individuals and firms providing information or advice on retirement
- distributors of retirement income products
- trade bodies representing financial services firms
- consumer bodies
- individual consumers
Our rules directly affect consumers who intend to buy an annuity. The information firms would need to provide is intended to prompt consumers to shop around and, where appropriate, switch provider before they purchase an annuity.
Firms affected by these changes will need to ensure compliance from 1 March 2018.