While the UK’s financial regulator, the Financial Conduct Authority, had planned a major inquiry into the annuities market, reports say the watchdog has rethought its market probe after government reforms took hold.
According to reports, the FCA sought to review the annuities industry, with plans for the market inquiry announced last February. The FCA was concerned about the suspected lack of competition in the market.
But only a few weeks later, UK finance minister George Osborne announced his own plans to overhaul the pensions system. The reforms ended the requirement to buy an annuity with a pension, a practice that was a chief concern among the FCA.
The reforms mean once-leading annuity providers will now have to compete against other investment products, according to reports.
The FCA announced Monday that it will revise its market inquiry plans to reflect the industry overhauls, but the regulatory noted that it will carry on with the study to research the competitive nature of the market.
Full content: Reuters
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