Open market options statement meaning

An open market options statement is the pre‑retirement information a pension provider must give a member, explaining their right to shop around for retirement income products and setting out the options for accessing defined contribution benefits. Under FCA COBS 19.4 (including COBS 19.4.1A R), firms operating personal pensions, stakeholder pensions, FSAVCs, retirement annuity contracts and section 32/buy‑out policies must provide this as part of the wake‑up materials when a member is approaching, or choosing to access, benefits. The content must cover annuity purchase, drawdown and UFPLS; the right to seek annuity quotes from other providers; potential eligibility for enhanced annuity rates; key risks, charges, tax implications and signposting to Pension Wise/MoneyHelper, with risk warnings tailored to the member’s circumstances. These requirements reflect the pension freedoms in force from 6 April 2015 and have since been updated by FCA rules. Usage is consistent across England & Wales, Scotland and Northern Ireland under the UK‑wide FCA regime. In Ireland, the concept of shopping around exists but there is no FCA‑mandated “open market options statement”; equivalent pre‑retirement disclosures are governed by the Pensions Act 1990 and Central Bank requirements for PRSAs and personal pensions.