Closed-book provider Phoenix has said it is considering launching its own non-advised drawdown proposition depending on the outcome of a Financial Conduct Authority (FCA) review into the market.
In its business plan for the year released in April, the FCA said it will look at a sample of providers over the way they are selling non-advised drawdown as part of its Retirement Outcomes Review.
Phoenix currently does not offer a non-advised drawdown service for its clients, as it decided the product was too complex, according to Danny Dowd, the company’s head of retirement propositions.
‘Following pension freedoms we had a lot of consideration around should we look at offering a drawdown contract ourselves,’ Dowd said. ‘We concluded that due to the complexity of the product we felt that it is something that predominately needs to be advised.’
Dowd said instead of offering its own product, the firm decided to partner with Just, formerly Just Retirement to refer clients to a drawdown service.
However Dowd said depending on the outcome of the FCA’s non-advised drawdown review, the company may develop its own offering in the space.
‘We are monitoring the FCA’s direction of travel with the non-advised drawdown review very closely,’ he said.
‘If the FCA gives some clear guidance around how non-advised drawdown can work, then it is something we could revisit and could look at. We have no plans at this stage, but theoretically it could be something we will look at.’