Regulators want to make market work better for savers
Pardon the Interruption
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The Financial Conduct Authority and the Pensions Regulator have published a feedback statement on the consumer journey, saying they aim to improve saver outcomes and take into account different groups.
In May last year, the two regulators launched a call for input on the pensions consumer journey asking industry what could be done to help engage consumers to make informed decisions leading to better pension saving outcomes.
The responses to this said among others that tailored support was needed reflecting the personalised journey many savers were on, that there was a risk that some groups, particularly women and Muslim savers, were poorly served, and that fear of crossing the advice boundary was stopping providers from giving more support to savers.
Regulation to be informed by how well market works for different groups
In their feedback, TPR and the FCA outlined work that is already underway, such as the new consumer duty for FCA-regulated firms, as well as a planned update to their joint strategy.
They also highlighted that TPR is setting up three stakeholder panels covering savers, schemes and practitioners, and employers and that it intends to conduct an equality review to understand how well the market works for different groups of savers, which will inform regulatory responses.
In addition, the Pensions Regulator is reviewing its ‘communicating to members’ section of the DC code-related guidance to provide more information on inclusivity, use of behavioural insights and timing of communication.
“The changing nature of work and retirement means there can’t be a one-size fits all approach to delivering good engagement with pensions and we look forward to working with industry on innovations that help deliver communications that work for all savers. As government, regulators and industry we should be clear on the outcomes we want to achieve and work towards enhancing and protecting all savers’ pensions,” said David Fairs, TPR’s executive director of regulatory policy, analysis and advice.
“Respondents’ feedback confirmed the need for us to be explicit in our goals and reinforced the importance of driving value for money across the pensions saving journey. We will use these insights to guide our future work and help consumers make the most of their retirement savings,” Fairs added.
