2014年-FCA英国金融行为监管局_rims_revised_terms_of_reference_5页_194kb

Retirement Income Market Study: Revised Terms of Reference Summary

Core Content

The Financial Conduct Authority (FCA) launched a market study into retirement income on 14 February 2014 to assess whether competition is effectively serving consumers in this sector. This study follows a thematic review of annuities and a financial promotions review of annuity comparison websites, which were also published on the same date. The Government's March 2014 Budget introduced significant changes to the pension landscape, prompting the FCA to update the scope of the study.

Main Objectives

• Promote effective competition: The FCA aims to ensure that competition in the retirement income market benefits consumers by fostering efficiency, innovation, and fair pricing.
• Assess current and future market conditions: The study will evaluate the current competitive landscape and predict how it might evolve in response to recent regulatory and policy changes.
• Identify competition risks and vulnerabilities: The FCA will explore potential issues that may hinder competition and affect consumer outcomes, especially in the context of new products and business models.

Scope of the Study

Geographical Scope

• Products available to UK customers by providers active in the UK.

Consumers

• Individuals using funds from personal pension plans or Defined Contribution (DC) occupational pension schemes to purchase retirement income products.

Focal Products

• Annuities and income drawdown products.

Related Products and Markets

• Defined Benefit (DB) pensions, State pension, savings accounts, cash ISAs, NS&I products, stock market-based investments, investment bonds, own/family business, and equity release products.

Types of Firms

• Insurance companies (large and small), intermediaries (advisers, brokers), and providers of Self-Invested Personal Pensions (SIPPs).

Key Issues to be Explored

1. Competitive Conditions in the Current Market Landscape

   • Evaluate whether competition is effective and in the interest of consumers.
   • Assess product distribution, the role of advice, consumer decision-making, and the effectiveness of the open market option.

2. The New Market Landscape

   • Examine how new products and business models may develop in response to Government reforms.
   • Investigate potential competition risks and vulnerabilities in the new landscape.
   • Consider the impact of regulatory frameworks such as Solvency II Directive and PRA Rules.

3. Value for Money of Retirement Income Products

   • Assess the value for money of different retirement income strategies.
   • Establish a baseline based on current market conditions and products.
   • Determine key factors influencing consumer choices.

4. Consumer, Provider, and Intermediary Behavior

   • Analyze consumer decision-making and inertia in the market.
   • Explore how consumers, providers, and intermediaries are likely to behave in the new landscape.
   • Evaluate the effectiveness of the impartial guidance guarantee and other consumer protection measures.

Next Steps

• The FCA will continue engaging with market participants, consumer bodies, and stakeholders.
• An interim report is expected to be published later in 2014.
• Possible outcomes include:
  • Regulatory or policy changes
  • New or revised rules
  • Use of firm-specific enforcement powers
  • Proposals for industry initiatives or self-regulation
  • Publishing guidance
  • Referring the market to the Competition and Markets Authority (CMA)
  • Taking no further action

How to Submit Views and Evidence

• Deadline: 18 July 2014

• Email: RetirementIncomeMarketStudy@fca.org.uk

• Postal Address:

  Retirement Income Market Study Team
  Competition Department
  Policy, Risk and Research Division
  Financial Conduct Authority
  25 The North Colonnade
  Canary Wharf
  London E14 5HS
  

• The FCA will not address individual complaints but will consider responses to this call for information for public inspection unless confidentiality is requested.

Conclusion

This market study is a comprehensive review of the retirement income market, focusing on both existing and emerging products and services. It aims to ensure that competition remains effective and in the interest of consumers, especially as the market evolves with new reforms and innovations. The FCA is seeking input from stakeholders to inform its findings and potential regulatory actions.