Yorkshire-based IBOSS Asset Management has renamed its MPS range in preparation for the Financial Conduct Authority (FCA) thematic review of retirement income advice.
The changes, which came into effect yesterday (November 1), saw the current income managed portfolio service renamed ‘Decumulation MPS’.
The FCA began conducting its thematic review of retirement income advice in Q1 2023, with the findings set to be published later in this year.
IBOSS said it had conversations with financial advisers regarding where clients sit within the “at retirement” stage of their investment journey.
Additionally, IBOSS wanted to know what kind of investment vehicles advisers were considering and what characteristics they would need to exhibit.
As a result of this research, IBOSS said it realised its ‘Income MPS’ would be “an excellent fit” for the ‘Decumulation MPS’.
It concluded that the title ‘Decumulation’ captured the “essence of the portfolios more accurately, addressed the client demographic that the range would be most suited to, and was more appropriate to describe the range’s overall service from a consumer perspective.”
IBOSS chief investment officer Chris Metcalfe said: “In our opinion, and for the foreseeable future, no AI will be able to replicate the crucial ongoing discussions between the adviser and their clients, and this will remain a complex investment area that their professional know-how, soft skills, and expertise will remain imperative.
“We are confident that our Decumulation MPS can help support the adviser and planner community within this space as it focuses on what we class as defensive characteristics, enabling clients to take the level of income they require for their own personal circumstances.”
IBOSS added: “Decumulation is a crucial financial strategy for retirees to make sure they have enough money to support themselves after they stop working without running out of funds and to maintain quality of life during retirement.”
The FCA launched its thematic review to explore how advice firms deliver retirement income and assess the quality of outcomes consumers get.
It said previously planned work on this topic known as ‘Assessing Suitability Review 2’ was paused to deal with Covid.
This new thematic review will examine how the retirement income advice market is functioning.
The FCA will also focus on how firms are responding to changing consumer needs as a result of the rising cost of living crisis.
