On 27 August 2025, the Financial Conduct Authority (FCA) published a statement intended to provide clarity for stakeholders (such as employers, platforms, payroll and savings providers) on how workplace saving schemes can be successfully set up and implemented to comply with current rules and legislation.

The statement focuses on ‘opt-in’ schemes (i.e. schemes where employees choose to save via payroll, rather than schemes where employees are automatically enrolled) and explains how employers and savings providers can approach perceived regulatory barriers:

  1. National Minimum Wage: Employers should seek to avoid certain risks that could breach National Minimum Wage Regulations 2015 and ensure that workers receive the national minimum wage in the relevant period notwithstanding any deductions.
  2. FCA regulated activities: The statement mentioned the FCA’s view that workplace savings schemes can be structured in a way that does not involve the employer carrying out a regulated activity, particularly where the funds are transferred to the savings provider. However it mentioned that employers should consider their models in line with the Financial Services and Markets Act 2000 (FSMA) and other legislation, including financial promotions.
  3. Financial Promotions: The FCA provided further guidance for employers on when they might be communicating a financial promotion in relation to a scheme, such as encouraging employees to join, and that therefore such a communication would need to (i) be issued by a FSMA authorised person to the employees, or (ii) be approved by a person authorised under FSMA who has the required permission to approve, or (iii) come within an exemption from the restriction.
  4. Banking: Conduct of Business Sourcebook (BCOBS) compliance for saving providers: The FCA highlighted the relevant requirements in BCOBS when employees open a workplace savings account, which apply like any other savings account and encourages providers to engage wih how to meet relevant BCOBs requirements without discouraging saving.
  5. Customer Due Diligence (CDD): When carrying out due diligence as per the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, specifically Regulation 28, the FCA mentioned examples of good and poor practice in Financial Crime Guidance (3.1) and how savings providers can receive the necessary information to carry out CDD leveraging information from employers’ pre-employment checks.
  6. Data protection considerations: The statement outlined relevant UK GDPR lawful bases for responsible data sharing by employers, payroll providers or benefits companies. These included processing data to deliver contractual services with consent, or where use is expected or justified with minimal privacy impact. It also referred to ICO guidance to help stakeholders identify the appropriate legal basis.
  7. Financial Services Compensation Scheme (FSCS): The statement made clear that employees must receive an information sheet on deposit protection when contracting with a savings provider. The FCA mentioned this can be incorporated into the savings account application process or onboarding for new joiners. It also noted that funds held with e-money institutions are not directly FSCS protected.
  8. Consumer Duty: The statement also made clear that savings providers are in scope of the Duty whereby requirements apply to workplace savings products as they do to any other product and services.

Next steps

The FCA will continue to collaborate with stakeholders and the government to promote the implementation of workplace savings schemes to help consumers start saving more regularly.