Pensions Strategy

Andrew Love Excerpts

Thursday 20th March 2014 Commons Chamber

[Steve Webb]

My hon. Friend is a distinguished member of the Select Committee, which has scrutinised the issues very effectively. He is quite right that the guidance must come at the right time. We want people to think about their retirement planning much earlier. Certainly, when they are thinking about buying financial products—or, in the jargon, decumulating—we need to make sure that there is someone on their side to give them impartial guidance. We will make sure that that happens.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

The Financial Conduct Authority is not only a process regulator but a product regulator. Will the Minister ensure that it is seized of the need to look carefully at new, innovative products, because the group of people with whom it is dealing are very vulnerable, and it is important for the regulator to keep an eye on the market?

[Steve Webb]

The hon. Gentleman is quite right that products must be properly regulated. The difference between the current situation and what we propose is that, under our proposals, before going to independent financial advisers, people are guaranteed to have a conversation with somebody who is independent and on their side to talk them through their options. All too many people simply do not get that at the moment, and they risk making the wrong choice as a result. We will put that right.