Detail of outcome
The government announced in October 2016 that it would not proceed with proposals to introduce a secondary market for annuities and therefore this consultation has concluded. After extensive engagement with industry, financial regulators and consumer groups, it became increasingly clear that creating the conditions to allow a vibrant and competitive market to emerge could not be balanced with sufficient consumer protections.
This document sets out and seeks views on draft secondary legislation to create three new specified activities in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 that will apply to any person wishing to operate in the new secondary market for annuities.
The government’s proposals will require anyone wanting to operate in this market to be authorised and supervised by the Financial Conduct Authority (FCA) and will make it easier for the FCA to apply specific, tailored rules to participating UK firms.