A new potential pension mis-selling scandal is on the horizon, linked to pension annuity products sold between 2008 and 2015. A report from the FCA says that many people who had poor health were incorrectly told that they could not shop round for an Enhanced Annuity, which gives higher payments to people who are not expected to live as long, due to their health condition.
The FCA report said –
“At a small number of firms the FCA did have concerns when significant communications took place orally – normally over the phone – which was likely to have caused some customers to purchase a standard annuity when they may have been eligible for an enhanced product… These failings were of sufficient concern at a small number of firms that they are now being asked by the FCA to review all non-advised sales from July 2008 and, where appropriate, provide redress.”