The FCA has published a damning report on the industry saying that there is weak price competition with customers paying high charges with little choice and that some were examples of poor value for money in some funds.
Invested savings and pensions are dependant and run by asset managers. The FCA has published an interim report on asset management after studying it for a year.
The FCA has also been looking at the new Lifetime Individual Savings Accounts (LISAs) and has said that they should carry a series of warning for consumers. LISAs are launching in April 2017 and are offering bonuses for people who use the money to save for retirement or a new home, but the FCA believes there is a danger that some people will not fully understand them.
The FCA believes that some people could confuse a LISA and a pension pot, while others many not understand the impact of early exit charges. The regulator will now carry out a ten-week consultation into its suggestions, so new rules can be in place before the LISA is launched.
In pension news, it has been reported that the Treasury intends to carry on with former Chancellor George Osborne’s policy on the age at which people can access their personal pension. Despite a new Chancellor, Philip Hammond, being in office, it is understood that the Treasury is planning to go ahead with the plan of dropping the personal pension age to 55.
In property news, there are signs that the buy-to-let boom could be coming to an end as figures from Nationwide Building Society showed that lending to landlords have reversed in the past six months.
The building society lent £2.8bn in the six months to September 2016, down from £2.9bn in the same period a year earlier.
It is believed that new affordability tests introduced before the changes in tax relief on buy-to-let mortgages have made it harder for would be landlords to get into the market.
The Deputy Governor of the Bank of England has said that he doesn’t believe the long spell of record low interest rates has driven inequality in the UK.
Ben Broadbent also said that the Bank would tread carefully in the next few months between controlling inflation and setting interest rates after the Brexit vote.
The Deputy Governor’s statements come after the Prime Minister, Theresa May, said earlier this year that there had been some “bad side effects” from the low interest rates and quantitative easing.