The NPC wrote to the Financial Conduct Authority, but we are looking for advice from financial experts. If you are able to advise us on Annuity Transfers, please get in touch via email@example.com
The Letter to the FCA is below
Financial Conduct Authority
12 Endeavour Square
We are writing on behalf of our 1.5 million members and indeed any older person who holds annuities as a way of enhancing income on retirement.
The National Pensioners Convention is the largest campaigning organisation for older people in the UK. Our main objective is to promote the welfare and interests of all pensioners, as a way of securing dignity, respect and financial security in retirement, not just the pensioners of today but for those who will retire in the future.
Our enquiry with you is how we can promote reform of the annuities business, but in particular the rights of annuity holders to be consulted on changes. The most recent case of Prudential and Rothesay Life is one you will be familiar with. In 2019, your Authority fined Prudential for failures in business practices. Unfortunately, it seems it has not helped those who objected to having no say in the transfer of their business.
In 2018 over 360K Prudential annuity holders were surprised to be informed that their annuities would be transferred to a company they had never heard of - Rothesay Life (RL). Many had chosen Prudential for its long-established reputation for reliability. This, with the sales statement that “it is payable for life”. gave a sense of security.