On 1 December 2022, the FCA published Consultation Paper 22/25: Proposed regulatory framework for pensions dashboard service firms (CP22/25).
In CP22/25, the FCA sets out its approach to supervision and enforcement for dashboard operators, including on fees, regulatory reporting, record keeping, prudential requirements and conduct rules.
Under the following 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.
The proposals in CP22/25 broadly fall into two categories:
- Requirements that are specific to this new activity, and the risks the FCA consider firms undertaking this activity can pose to their strategic objective that markets function well.
- Applying the minimum high standards the FCA expect of all FCA regulated financial services firms to new firms undertaking this new activity. Firms that are already FCA authorised will be familiar with these expectations and how they apply in other parts of their business.
The deadline for responses to the consultation is 16 February 2023.