The Financial Conduct Authority has published three pensions papers covering advising on pension transfers, the retirement outcome review, and effective competition in non-workplace pensions. The last one – which I’ve contributed to – outlines a number of proposals to improve competition in the non-workplace pensions market in the UK.
To share my Head of Department’s words, ‘this has been one of the most challenging data gathering exercises I have been involved in’, with more than 100 firms providing input for our analysis.
We found similar weaknesses to those the OFT identified in the DC workplace pension market in 2013, ie demand-side weaknesses and reduced competition on charges.
We now invite stakeholders’ views and welcome alternative suggestions for the way we and the industry can address the issues identified. Here you can find more information and download the feedback statement (pdf).
Lorenzo Migliaccio ’14 is Senior Associate Economist at the Financial Conduct Authority. He is an alum of the Barcelona GSE Master’s in Competition and Market Regulation.