We are introducing new requirements primarily to help non-advised drawdown consumers who struggle to make investment decisions. We also intend these requirements to promote competition by making the actual charges paid by consumers clearer, and comparisons easier.
Our new rules and guidance:
The 2015 pension freedoms give consumers more complicated choices to make about how to invest their pension savings, and when to draw on them. In 2016, we launched ROR to investigate how consumers and providers were responding to the pension freedoms.
Our ROR Final Report (June 2018) set out our findings and our proposed package of remedies, which we have consulted on in 2 stages.
We published our final rules and guidance on the first stage in PS19/1 (January 2019). This covered ‘wake-up’ packs, information for consumers about annuities, and changes to make the cost of drawdown products clearer and more comparable for consumers.
This Policy Statement (PS19/21) sets out our final rules and guidance on the second stage.
This Policy Statement will be of interest to firms providing income drawdown. It will also be relevant to stakeholders with an interest in pensions and retirement issues, including:
Firms should note the Handbook changes in the PS and adapt their practices accordingly.
The new rules and guidance set out in this Policy Statement will come into force on 1 August 2020.