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FSA launches review of drawdown advice
by William Robins on Oct 25, 2011 at 16:21
The Financial Services Authority (FSA) has begun a review of drawdown advice by sending a questionnaire to IFAs.
The regulator is quizzing advisers on how they are using the new drawdown rules that came into force this April.
Reforms abolished compulsory annuitisation at age 75, allowing savers to stay in drawdown until they die. It also introduced a capped drawdown regime limited to 100% GAD, while anyone who could secure £20,000 guaranteed income can drawdown unrestricted income from the drawdown pot.
An FSA spokesman said the questionnaire was a first step to ensure advisers were effectively communicating the changes to clients.
The spokesman said: 'We are following up on the changes to drawdown regulations made by HMRC in April this year. We are seeing how advisers have adapted to this change and whether they are communicating these changes to the customer. We will have to see what we get back from this before deciding where else to go.'
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