FCA sets out good practice for retirement income advice

The FCA has published findings from its review of advice consumers receive on meeting their income needs in retirement.

In 2023, the FCA reviewed a sample of 28 firms, including a desk-based review of firms’ advice models and governance, and sampling advice files, using its Retirement Income Advice Assessment Tool.

The review illuminated three key areas for determining good outcomes for clients in decumulation:

• the quality of firms’ information collection and record-keeping;
• the appropriateness of client risk profiling; and
• the sustainability of clients’ income withdrawals.

All firms involved in the review were given individual feedback, including corrective actions and the provision of potential redress where appropriate.