As long ago as February this year the FSA published its consultation paper CP 11/09 which encapsulated the changes needed in retail investments product disclosure to reflect RDR adviser charging and to improve pension scheme disclosure. Consultation closed on this back in May. We still await final rules. This was followed in August by a Policy Statement PS 11/09 linked to CP10/29 which is focused on implementing RDR within platforms and nominee-related services. It is worth looking at the Disclosure requirements of each in turn as they will collectively create a significant extra burden for the market. The reasoning for CP11/09 is as follows: consumers need more information about products’ charges, risk levels and the main product features so they can make informed decisions. From the point of view of providers many have been crying out for more practical flesh on the bones of RDR changes which CP11/09 delivered in several key areas.
Archive for the ‘Disclosure’ Category
CP 11/03 – Illustrations –“even though they are clearly a speculation and not a prediction, they can show the potential for variable returns and may help consumers with planning for future needs.”
Thursday, March 10th, 2011
Last month the FSA consultation paper CP 11/03 was released to improve pension scheme disclosure. In effect the consultation looks to ensure firms give consumers enough information about a product’s charges, risks and main features, so as to enable them to make an informed decision.
Sunday, October 3rd, 2010
Complexity with simplicity
Projecting what pensions illustrations will look like in 10 years time is fraught with danger. Suffice to say the industry never moves as fast as you expect. It is our belief that inevitably, as our financial lives become more complicated – so too will our requirements of retirement planning products. More importantly, we think people are going to increasingly demand more holistic and dynamic views of their financial status ‘in the round’. Delivering all this information in a way which does not bamboozle the customer will be the key challenge in illustrations in the next 10 years. So the challenge is then to deliver this complexity in a simple enough way for customers to access and make sense of it wherever they are, on any connected device of their choice. Specifically customers want to make sure their pensions and investment products are performing well and delivering good value for money. The other challenge for illustrations is to ensure that they remain easily auditable and compliant with regulatory requirements just as legacy Statutory Money Purchase Illustrations (SMPIs) are today.