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FSA launches review of drawdown advice

by William Robins on Oct 25, 2011 at 16:21

FSA launches review of drawdown advice

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.'

3 comments so far. Why not have your say?

Man in Black

Oct 25, 2011 at 16:55

They have a pop at drawdown every couple of years...never publish any serious guidance to the industry to match what they dish out to individual firms...

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The ssinnic

Oct 25, 2011 at 22:32

Do they actually know what "drawdown" is?

I bet they think it's a type of annuity based on the security of Greek Government bonds.

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Jonathan Kirby

Oct 26, 2011 at 12:40

Having spent many days writing to and talking with clients about these changes since they were announced I wonder what questions they are going to ask?

On past form, whatever they are, they are bound to be irrelevant to the small IFA and consequently impossible to answer with any degree of accuracy.

They will then no doubt take these 'unsatisfactory' answers as proof that all IFA's should be investigated and then pick petty fault as we all no we are damned come whatever.

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