The FSA has unveiled details of a two-stage investigation into annuities. The first phase of the work will focus on the level of detriment customers suffer from not shopping around, while the second will consider whether provider's processes facilitate shopping around.
Analysts Deutsche Bank said that providers selling annuities mainly to existing pension customers could be hit hardest by the probe, according to reports.
'A successful FSA investigation would logically impact on those companies primarily selling only to their in-house customers,' said Deutsche Bank analyst Oliver Steel in a note to clients. 'There is a risk that in-house annuity providers such as Standard Life and Resolution lose out.'