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Press comment: FCA publishes Terms of Reference for the Retirement Outcomes Review


The following press comment has been distributed to our trade and national press contacts this morning following the FCA’s publication of the terms of reference of its Retirement Outcomes Review.

The terms of reference state the review will also look at non-advised customer journeys and notes that “there are also now higher numbers of consumers entering income drawdown products without use of a regulated adviser. [Figure 4 shows that] for the period October to December 2015, 32% of reported drawdown sales were not associated with a regulated adviser. In the Retirement Income Market Study, we noted that in 2013, 97% of new income drawdown sales were sold through advice services.”

Jon GreerJon Greer, pensions technical expert at wealth manager Old Mutual Wealth, comments:

“Non-advised drawdown is a relatively new phenomenon. Before the pension freedoms were introduced in April 2015 there was effectively no such thing, and a customer also needed to have a secure retirement income from other sources before they could even consider the type of drawdown flexibility on offer today. As the rules have changed it is entirely right that the FCA is looking at how customers come to their decision to take their retirement income in this way.

“Drawdown can be a very tax-efficient method of securing a retirement income, provided customers choose the most appropriate strategy for their needs and circumstances.

“The new normal for retirement income is about choice and it is vitally important that customers understand their choices before they make them. We firmly believe that receiving full professional financial advice is the best way to achieve this. Our research with YouGov shows that 60% of those aged 50-75 who have never seen an adviser suggest they have little or no understanding of drawdown. This falls to 38% if the respondent saw a financial adviser to plan their retirement.

“40% of those who have never seen an adviser state they have no understanding of drawdown at all. This figure is more than halved (18%) if they saw an adviser.”



For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.