FCA consults on dashboards regulation
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The Financial Conduct Authority is seeking views on proposed standards for pensions dashboards providers, including conduct requirements for those offering additional tools within their dashboard. It has also published final rules for providers of non-workplace pensions on offering a default investment option.
The FCA has set out how it plans to supervise dashboard operators and enforce its rules, including on fees, regulatory reporting, record keeping, prudential requirements and conduct rules for firms within its remit.
Under the proposals, dashboard operators that want to offer additional services to improve engagement must meet “rigorous” conduct standards, the regulator said.
These services the FCA envisages could be investment advice including robo-advice, or guidance, as well as providing models, calculators and other tools for savers to use.
“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,” said executive director for markets Sarah Pritchard.
The FCA has also set out final rules requiring non-workplace pension providers to offer a default investment option, to support people struggling to make a choice. Providers can continue to offer wider options for more engaged consumers.
Under these rules, savers will also have to be warned about the risk of inflation eroding the value of significant and sustained levels of cash holdings.
Those in scope will have 12 months to implement the rules, but the regulator said that “given the current levels of inflation, the FCA is encouraging providers to send cash warnings now”.
Last week, the Pensions Regulator published a consultation on how it plans to regulate schemes’ and administrators’ compliance with dashboards regulations.
