Fidelity cool on annuity request
Fidelity Life boss Milton Jennings says it is unlikely it will go ahead with reopening an annuity product to a wholesale client group.
Monday, August 24th 2015, 5:59AM
by Susan Edmunds
It had been reported that the firm was approached by a group representing a defined benefit superannuation scheme, wanting to wind up before the full implementation of the Financial Markets Conduct Act.
Jennings confirmed that Fidelity had been approach by a group wanting it to take on some of its annuities.
“We are definitely not going into the retail market and we are probably not going to take this on, either,” he said.
“We had a look at it and you have got to go through the legal process if you do start issuing annuities and we are not planning to do that because there is not really a market for it at the moment.”
Fidelity operated the last annuity product in the market. It stopped just under two years ago because of a lack of demand and increasing regulatory pressure.
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