She said: "While investment pathways may be helpful for some consumers, there could also be a risk of them driving lower engagement.
"The retirement outcome review talks about making it 'quick and simple for consumers to make investment decisions for their drawdown pension, but this could give consumers the false impression that this is all the engagement required to make a success of their drawdown pension."
The FCA’s rules have been criticised by Martin Tilley, director of pensions technical services at Dentons Pension Management Ltd, as being "unnecessary" and out of touch with the core market of Sipp providers.
He said: "Clients come to Sipps with clear investment objectives and are usually high-net-worth or active client so it is pointless offering them a default pathway."
Martin Bamford, financial planner and director of Informed Choice, said: "Sipp default investment pathway is something of an oxymoron.
"The majority of investors who select a Sipp want to apply a bespoke investment strategy, rather than opt for a default approach.
"When Sipp investors enter retirement, default pathways for decumulation investing could prove handy, as investors will often struggle to select the right investments for this unless they are working with an expert, independent financial adviser."
rosie.quigley@ft.com
