04 August 2008
The FSA has completed a review into how annuity providers treat
consumers at the point of 'retirement'. The survey has found major
deficiencies in two areas: providing information and completing
transfers.
On the positive side, the FSA found that 60% of annuity
providers did provide clear information to their customers about
their upcoming choices at retirement, such as the right to shop
around on the 'open market'. But a significant proportion (38%)
were letting their customers down in this area.
The FSA also found that in cases where customers had shopped
around and were transferring between companies, 60% experienced
delays. Such delays could be causing consumers to lose money.
The FSA believes a number of companies are failing to treat
their customers fairly and must make improvements. The regulator
has imposed a December deadline on regulated companies to meet its
standards for treating customers fairly.
The FSA's review forms part of the Government's overall review
of the 'open market option', which was announced in the December
2006 Pre-Budget Report.
