United Kingdom

Topic: Pensions

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FCA Consultation Paper on Regulatory Framework for Pensions Dashboard Service Firms Further Consultation

On 27 March 2024, the FCA published a Consultation Paper, CP24/4, setting out proposed guidance and changes to the regulatory framework for pensions dashboard service firms. Background Pensions dashboards will be digital interfaces which allow consumers to find their pensions and view basic information about them in one secure place. The Government has created the … Continue Reading

FCA Speech: The Future of Pensions

On 13 March 2024, the Chief Executive of the Financial Conduct Authority (FCA), Nikhil Rathi, delivered a speech on the future of pensions at the JP Morgan Pensions and Savings Symposium. Key points Mr Rathi acknowledged that pensions auto-enrolment processes have been a success, but emphasised the importance of addressing the gaps and inadequacies that … Continue Reading

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024 is published

On 20 February 2024, the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024 (the Order) was published, along with an explanatory memorandum. The Order amends the regulatory framework, to make operating a pension dashboard service which connects to the Money and Pensions Service (MaPS) dashboards digital architecture a regulated activity. Such dashboards … Continue Reading

Draft – The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024

On 20 December 2023, there was published on legislation.gov.uk a draft of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024. The draft Order makes operating a pension dashboard service which connects to the Money and Pensions Service dashboards digital architecture a regulated activity. Such dashboards will be provided by commercial bodies … Continue Reading

FCA publishes new webpage on accepting pension transfer referrals from overseas advisers: UK authorised firms’ responsibilities

On 28 April 2023, the FCA published a new webpage on accepting pension transfer referrals from overseas advisers: UK authorised firms’ responsibilities. The new webpage highlights the increased risks to consumers when overseas firms refer defined benefit scheme members to UK firms for pension transfer advice. The webpage also sets forth the FCA’s expectations of … Continue Reading

FCA updates webpage on PS22/13: Calculating redress for non-compliant pension transfer advice

On 30 March 2023, the FCA updated its webpage on Policy Statement 22/13: Calculating redress for non-compliant pension transfer advice. The webpage has been updated to include a section on defined benefit (DB) pension transfer redress calculations. The section clarifies the rules and guidance in DISP Appendix 4 that firms must use from 1 April … Continue Reading

HM Treasury publishes guidance on extending the pension fund clearing exemption and intragroup transaction exemptions

On 28 March 2023, HM Treasury published guidance explaining its plans to extend the pension fund clearing exemption and the exemptions for intragroup transactions. HM Treasury intends to lay a statutory instrument extending: A review of the pension fund exemption will be conducted ahead of its expiry in 2025, allowing time for consideration and implementation … Continue Reading

FCA publish statement on Liability Driven Investment

On 30 November 2022, the FCA published a statement made by the Pensions Regulator, the Central Bank of Ireland and the Commission de Surveillance du Secteur Financier on the resilience of Liability Driven Investment (LDI) portfolios and the operational governance of pensions schemes using LDI strategies. The statement sets forth that, the FCA expects asset … Continue Reading

FCA consults on a regulatory framework for pensions dashboard service firms

On 1 December 2022, the FCA published Consultation Paper 22/25: Proposed regulatory framework for pensions dashboard service firms (CP22/25). Proposals 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 … Continue Reading

FCA Policy Statement 22/15: Improving outcomes in non-workplace pensions

On 1 December 2022, the FCA published Policy Statement 22/15: Improving outcomes in non-workplace pensions (PS22/15). In PS22/15 the FCA sets out its responses to the feedback it received on its November 2021 consultation requiring firms to offer a default option to non-advised consumers buying a non-workplace pension (NWP). It also sets out the FCA’s … Continue Reading

Risks from leverage: how did a small corner of the pensions industry threaten financial stability? – Speech by Sarah Breeden

On 7 November 2022, Sara Breeden (Executive Director, Financial Stability Strategy and Risk, Bank of England) gave a speech at the ISDA and AIMA on ‘Risks from leverage: how did a small corner of the pensions industry threaten financial stability?’ In her speech, Ms Breeden sets out how leverage outside the banking sector can create … Continue Reading

FCA publishes Consultation Paper on calculating redress for non-compliant pension transfer advice

On 2 August 2022, the Financial Conduct Authority (FCA) published Consultation Paper 22/15 ‘Calculating redress for non-compliant pension transfer advice’ (CP22/15). In CP22/15 the FCA is proposing to set up a redress scheme for people who transferred out of the British Steel Pensions Scheme (BSPS). This should see firms pay over £70 million of compensation … Continue Reading

FCA consults on British Steel Pension Scheme consumer redress scheme

The Financial Conduct Authority (FCA) is consulting on proposals for a redress scheme for former members of the British Steel Pension Scheme (BSPS) who were given unsuitable advice to transfer out of the scheme and suffered financial loss. The BSPS, a large defined benefit pension scheme, had to be restructured after Tata Steel faced financial … Continue Reading

After TCFD, could TNFD compliance be next?

The Taskforce on Nature-related Financial Disclosures (TNFD) has released a prototype of its risk management and disclosure framework for nature-related risks. The TNFD wants trustees of pension schemes to start taking action now. The framework is designed to assist companies, investors and lenders in accounting for nature-related risks and opportunities in their decision-making. In effect, the … Continue Reading

Full steam ahead on Pensions Dashboards

New draft regulations show that schemes have much to do to get ready for Pensions Dashboards.  For master trusts and defined contribution (DC) auto-enrolment schemes the pressure is on. Dashboards are online platforms which will allow people to view information about all their pensions, including their state pensions, in one place.  The Pensions Dashboards Programme … Continue Reading

ESMA recommends clearing obligation for pension funds to start in June 2023

On 1 February 2022, the European Securities and Markets Authority (ESMA) published a letter to the European Commission providing its views on the clearing obligation for pension scheme arrangements (PSAs) and recommending the end of the current exemption for the clearing obligation with a one-year implementation period. Following its assessment, the ESMA concluded the PSAs … Continue Reading

FCA speech – Partnerships, priorities and predictions for the future in the pensions market

On 14 October 2021, the Financial Conduct Authority (FCA) published a speech by its new Executive Director for Markets, Sarah Pritchard, in which she discusses the key themes for the FCA which are, partnership, priorities and future predictions. The speech is entitled ‘Partnerships, priorities and predictions for the future in the pensions market’. The FCA … Continue Reading

FCA issues Warning Notices against three individuals for involvement in alleged pension scam

On 30 September 2021, the FCA published a Warning Notice Statement (21/2) in respect of Warning Notices that it had issued to three unnamed individuals on 10 August 2021 relating to their involvement in what the FCA describes as a pension scam. The FCA explained in the Warning Notice Statement that it considers that these … Continue Reading

PS21/12: Assessing value for money in workplace pension schemes and pathway investments: requirements for IGCs and GAAs

On 4 October 2021, the FCA published Policy Statement 21/12: Assessing value for money in workplace pension schemes and pathway investments: requirements for IGCs and GAAs (PS21/12). In PS21/12 the FCA summarises the feedback received to Consultation Paper 20/9: Driving value for money in pensions and sets out final rules. The final rules will come … Continue Reading

FCA and the Pensions Regulator outline a framework for value for money in defined contribution pension schemes

On 16 September 2021, the Pensions Regulator and the FCA jointly issued Discussion Paper 21/3: Driving Value for Money in defined contribution pensions (DP21/3). In DP21/3 the regulators discuss developing a common framework for measuring value for money (VFM) in defined contribution (DC) pension schemes. The aim of the two regulators is to drive a … Continue Reading

Pension Schemes Act 2021: Increased potential for criminal liability and how companies can mitigate this risk

The Pension Schemes Act 2021 (the Act) has introduced broad new criminal offences going far beyond the ‘reckless’ and ‘unscrupulous’ behaviour which the offences were originally envisaged to deter[1]. Whilst the Pensions Regulator (TPR) has today released a draft policy on how it will use its new criminal sanction powers (the TPR policy), some uncertainty … Continue Reading
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