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UK: FCA investigates US$450b private pensions market

 |  February 4, 2018

The Financial Conduct Authority (FCA) has launched a probe into non-workplace pensions to see whether there are issues around competition and consumer protection.

The regulator published a discussion paper on February 2, saying it was keen to divert its attention from the workplace pensions market to individual private pensions.

Under the spotlight will be whether providers are competing on charges and if there are barriers to consumers identifying, and choosing, from more competitive products.

The FCA said it was concerned informal defaults may be operating in the market for non-workplace pensions that are not subject to the same protection as defaults in workplace pensions

The FCA is turning its attention to private products after looking at workplace pensions, including both defined benefit and defined contribution schemes. “We believe it is now right to look at the other side of the picture and assess whether competition is working in non-workplace pensions,” said Chris Woolard, the FCA’s executive director of strategy and competition. “A diverse group of people save into non-workplace pensions and it is a growing market.”

Full Content: Financial Times

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