The FCA has published its first sector-specific 'Regulatory Priorities' report for pensions, providing an overview of the areas it intends to focus on in the coming year.
The regulator says it has been working to address the advice gap, progressing the Advice Guidance Boundary Review and setting out a new regulatory framework for targeted support that it says will "represent a fundamental shift in the support available to consumers".
The FCA noted that low levels of understanding and engagement remain a concern, particularly regarding adequacy and retirement decision-making. It says launch of pension dashboards, are expected to increase engagement and access to information, along with its new targeted support framework, intended to allow firms to deliver structured, conduct-regulated support without providing full financial advice.
The FCA also revealed that it will consult on simplifying its advice rules shortly.
A primary area of focus highlighted in the report is ensuring that pension schemes are well-run and deliver value for money to members. The FCA points to the ongoing development of a workplace pensions Value for Money (VFM) framework and the government’s wider Pension Schemes Bill as key mechanisms to support this goal.
Additionally, rules for SIPP providers are under review, focusing on due diligence and the handling of pension scheme money and assets.
Charlotte Clark, director of cross cutting policy and strategy at the FCA, said: “This report looks to the future of pensions, setting out our priorities to keep pace with a changing market.
“As government reforms transform the landscape, firms need to put value for money at the heart of their business, modernise where it strengthens long-term outcomes for savers and act now to prepare for what comes next.”
