So, where do we go from here?

The WPC recommends trialling auto-enrolment into guidance appointments, where members can opt out if they want. However, I disagree with this. 

Pension Wise offers an important source of guidance, but it should not be seen as the panacea for all poorly thought-through pension decisions. Instead, there is a need to acknowledge the role providers play in giving information and help to non-advised investors, and the extent to which regulation facilitates or obstructs that process. 

At the moment, companies are reluctant to even go close to the regulatory ‘perimeter’ between advice and guidance for fear of straying over it. We now have the opportunity through the FCA’s Consumer Duty initiative to re-examine this boundary and allow providers to offer good timely guidance to non-advised customers making tough decisions. 

Rachel Vahey is head of policy development at AJ Bell