The FCA has published a consultation on standards for operators of pension dashboards, and set out requirements for providers of non-workplace pensions.
Pension dashboards (CP22/25) will provide consumers with easier access to information about their pension savings. The FCA has set out its approach to supervision and enforcement for dashboard operators, including fees, regulatory reporting, record keeping, prudential requirements, and conduct rules.
Under these proposals, dashboard operators will be able to offer savers additional services that improve engagement with pensions provided they meet rigorous conduct standards. These services could include investment advice (including robo-advice) or guidance, as well as provide models, calculators, and other similar tools.
Sarah Pritchard, the FCA’s Executive Director for Markets, said:
‘Pensions dashboards will give savers better access to their data, helping them make better decisions for their retirement. Our proposals will encourage innovation while ensuring that we have the right rules in place to protect consumers.’
The FCA has also set out final rules requiring non-workplace pension (PS22/15) providers to offer consumers a default investment option, to support those struggling to make a choice. Providers can continue to provide wider options for more engaged consumers.
Under the rules, savers will also be warned about the risk of inflation eroding the value of significant and sustained levels of cash holdings. Firms will have 12 months to implement these rules, but given the current inflation levels, the FCA is encouraging providers to send cash warnings now.
These publications are the FCA’s latest steps to make sure savers are able to access value-for-money pension products and are supported in their decision-making as they build and access their savings pot.