FCA
Pension PlayPen’s coffee morning on Tuesday 10th February was a discussion of the FCA’s regulation regime for pension transfers. Here is the video of the hour long session.
This is a world away from the discussions on DB and CDC that have recently featured on the Pension PlayPen.
But they are the world that Guiide, here led by Philip Hodges, together with Tom McPhail and others hold close.
This video features Phil, together with Steve Goddard and Steve Webb. There are some great questions from Gareth Morgan (the Ferret) , John Quinlivan and Pi’s Laura Johns.
Beef
Thanks Henry – We don’t have a beef with the FCA in regard to the consultation on modelling tools and transfers (CP25-39). We are certainly supportive of the former and on the latter are advocating support for consumers when considering a transfer not after they’ve decided – read our published comments (later today)
It is a shame your graphic of beef cuts is not based on the usual UK cuts (e.g. Round is not a cut recognised by British butchers and the diagram is probably American and Canadian – Wikipedia has a comparison).
This may illustrate the confusion to the untrained public over the differing characteristics of the various pension products available to them and how to assess them for their particular needs and aspirations. The FCA can only deal with the situation after a person has either chosen a new or replacement product or has approached a financial adviser (if they are able and willing to pay for one). The pensions industry needs to provide an education framework so that people, particularly those with smaller pots, can approach the market with a developed view of their needs and their aspirations and not be bamboozled by the salesman or by advertisements (think about the car buying comparison).
MoneyHelper and Pension Wise etc. can do a good job here provided the individual contacts them first before any decisions are made. However it appears that they cannot link guidance to individual products, so the decision is still too often made on irrelevant factors (e.g. as Steve Webb pointed out whether you prefer a parrot to an an admiral). It is too late if guidance comes after a decision has been made.
Oh! for the simplicity of an employer’s defined benefit pension promise!