On 19 January 2023, the FCA announced a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement.

Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on the FCA’s response to the COVID-19 pandemic. This new thematic review will examine how the retirement income advice market is functioning. The FCA will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living.

The FCA will use the findings to help inform their future strategy for the sector. The results will also be an important indicator of how firms are implementing the Consumer Duty.

The review will begin in Q1 2023 with the aim to publish a report setting out the findings in Q4 2023.

Firms selected for the review can expect to be contacted early in 2023, when the FCA will also engage with trade bodies.