Stephen Lowe, group communications director at retirement specialist Just Group, commented: “As a statement of intent, the FCA’s strategy covers all the bases we were expecting in terms of promoting growth, encouraging technological innovation, reshaping the system to deal with the ageing population and supporting people to make better decisions. One question inherent in regulation is how much consumers need to be protected from their own poor choices or bad luck. The FCA’s strategy acknowledges that some risk is good even if it means a minority will not get the outcome they hoped for. So long as firms and advisers are doing the right thing – that is, adhering to their obligations under the Consumer Duty and other rules – then the system has done its job. But as we approach the 10-year anniversary of pensions ‘freedom and choice’, there is also acceptance that people are not yet getting the support and information they need to make decisions for their financial futures. Certainly, use of regulated advice by people accessing pensions has fallen so there is a lot riding on the success of the changes likely to be brought in following the advice-guidance boundary review although that is still some way off. So we welcome this five-year strategy and look forward to seeing its measures come to fruition.”
Hannah Gurga, ABI Director General, said: “The FCA’s latest strategy sets a positive direction for the future of regulation. We fully support its focus on encouraging growth through investment and innovation, and its intention to be a predictable, purposeful and proportionate regulator. This will be crucial to provide certainty for our industry and its customers. And it’s encouraging that the FCA's immediate areas of action include ensuring its approach to the Consumer Duty supports both effective competition and innovation, as well as providing fair value for consumers. We look forward to seeing more detail on this later this year. The FCA’s commitment to working with the industry to help consumers navigate their financial lives, and its renewed focus on combatting fraud and financial crime is also welcome. We’d encourage the FCA to use its full suite of supervisory and enforcement powers to disrupt illegal activities, and welcome the opportunity to work together to equip consumers with the information they need to better protect themselves from scams. We’ll continue to work together with the regulator, our members and the wider industry to deliver good outcomes for customers.”
Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said: “It's encouraging to see Targeted Support prioritised in the FCA's strategy update. As we mark the tenth anniversary of Pensions Freedoms, it's clear that savers value flexibility but also crave stability and certainty in retirement and, with less than 10% using a financial adviser, improving access to tailored guidance is crucial to help people get the balance right. It's vital that we keep up the momentum behind this initiative to make sure that people understand their options and feel confident in making the right decisions for them. As we move through the next few years, a collaborative approach between the regulator, consumer groups, providers and policymakers will be essential to ensure swift implementation of a strong Targeted Support solution. Done well, it has the potential to enable movement from complexity to clarity and deliver meaningful support to help people navigate their retirement with confidence."
FCA launches 5-year strategy to support growth and improve lives
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