The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have announced a new collaboration aimed at improving transparency and enforcing clearer standards on value for money for scheme members.
TPR chief executive Lesley Titcomb (pictured) and FCA director of policy David Geale (pictured) announced the collaboration at the annual PLSA conference in Liverpool.
“The landscape has changed, the way people engage with pensions has changed what we need to do is take a step back, see how people are working their way through that journey and if they are getting the help they need,” Geale stressed.
Both regulators identified a lack of pension income as the key risk factor going forward and outlined how this challenge could be managed by enhancing access and participation in pension schemes, securing a stable funding basis for schemes and ensuring that they are well governed.
TPR and the FCA also announced the launch of a joint review of the consumer pension journey, which aims to involve key industry players in a bid to improve members outcomes from defined benefit (DB) transfers and prevent pension scams.
The reinforced collaboration will also see the FCA taking a more active role in communicating with auto enrolment scheme providers, intermediaries and software providers. The financial services regulator also plans to launch further research into the scale of retirement under-saving.
Both watchdogs also plan to enhance the level of regulation and oversight at DC default funds, with TPR planning to strengthen the guidance for trustees on defined contribution (DC) investments.
“It isn’t just about costs and charges, albeit that is an important part, it’s all the aspects of thinking about how members get value from their savings,” Titcomb stressed.
Nigel Peaple, director of policy and research at the PLSA, welcomed the proposals. “We agree that more needs to be done to help savers make the most of their savings and therefore support the strategy’s focus on delivering value for money. We look forward to taking part in the announced review of the consumer pensions journey, which will focus on helping savers make well-informed decisions across their lifetimes.”
