For financial advisers only
The FCA published policy statement PS19/21 in January 2019, to recognise the growing market of drawdown customers.
To comply with phase three regulations providers will need to:
- present non-advised customers accessing drawdown with four investment pathway fund options based on four key objectives;
- issue warnings to customers making an active choice to invest wholly or predominantly in cash along with regular warnings regarding cash holdings, and
- provide decumulation customers with costs and charges information on an annual basis. This includes customers in drawdown or who have made at least one UFPLS payment.
These changes will be introduced from 1 February 2021.
Although the pathways are designed for non-advised customers, the FCA have said that advisers will have to consider pathway solutions when making their recommendation about which investment strategy is appropriate.