Consultation Response: FSA CP12/29 : Personal pensions

Document description

Consultation response to the FSA.

We support the objectives underlying the consultation paper (CP) although we have some concerns regarding the approaches proposed to be adopted. In particular, we believe that more thorough consideration needs to be given to simply reducing the nominal growth rates of CP12/10 by inflation of 2.5% pa in each scenario.

We welcome the efforts made to provide clearer information to consumers and hope that our comments below will aid the FSA in this task. As the FSA and FRC have decided to adopt different approaches following CP12/10, this may result in inconsistencies between real terms Point-of-Sale (POS) projections and SMPI in some circumstances. The repercussions of this difference will need to be addressed and we have highlighted some areas of potential confusion that may arise within our response.