The FSCA published the Draft Conduct Standard on the criteria for Living Annuities in a Default Annuity Strategy for public comment. The Draft Conduct Standard is aimed at:
- Providing guidance on the interpretation of sustainable income,
- Providing guidance on the need to monitor and communicate income sustainability to pensioners in the default living annuity, and
- Reducing the possibility of a reduction in income to pensioners placed in a default living annuity by limiting the maximum drawdown possible.
The closing date for submissions on the draft Conduct Standard is 14 January 2019 and must be submitted in writing directly to the FSCA. The proposed commencement date of the Conduct Standard is 1 March 2019.
Click here to access the Consultation documents relating to the Draft Conduct Standard for Living Annuities in a Default Annuity Strategy.