Responding to the FCA’s Call for Input around changes to the rulebook post-Consumer Duty (which closes on Thursday 31st), Aegon has outlined potential areas for improvement, while suggesting it may be too early to reach definite conclusions.
Steven Cameron, (pictured) Pensions Director at Aegon said:
“Aegon is pleased the FCA is open to simplifying its rulebook by removing duplication or unnecessarily prescriptive rules no longer needed post-Consumer Duty. We see scope to simplify rules around product disclosure and illustrations, to allow firms to design communications which truly help improve customer understanding and engagement.
“Consumers could also benefit if the FCA rules made it easier to move from paper-based to digital communications, which can be more engaging and allow firms to track actions taken by consumers to deliver better outcomes.
“Ironically, the consultation around the Value for Money Framework for workplace pensions which closed earlier this month includes particularly prescriptive rules which we hope will be simplified before going live.
“Looking ahead, we hope the willingness to rely more on outcomes-based regulation rather than prescription will shape the FCA’s approach to solutions flowing from the Advice Guidance Boundary Review, including targeted support.
“Overall, however, the Call for Input may be a little premature to reach firm conclusions. While we know the Labour Government were keen for the FCA to consult, certain aspects of the Consumer Duty only came into force in July and it may take more time to fully assess scope for simplification within an evolving regulatory approach.”
