We are consulting on how Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) compare the value for money (VfM) of pension products and services and promote the best value for pension scheme members.
Why we are consulting
We want to make it easier for Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) to compare the value for money (VfM) of pension products and services.
IGCs currently oversee the VfM of workplace personal pensions provided by firms like life insurers and some self-invested personal pension (SIPP) operators. They provide independent oversight of workplace personal pensions in accumulation (building up pension savings) and of the investment pathway solutions that will have to be offered from 1 February 2021. They act for consumers who are less engaged with their pension savings.
Who this applies to
This consultation is relevant to:
- IGCs, GAAs and their advisers
- all firms that intend to provide pathway solutions and that provide FCA-regulated workplace pension products
- third party firms that provide GAAs
- workplace pension scheme members and their employers
- consumer representative groups
- trade bodies representing financial services firms
- charities and other organisations with an interest in the ageing population and financial services
Background to this value for money in pensions consultation
The proposals in this CP stem from our commitments in the FCA and The Pensions Regulator (TPR) joint regulatory strategy for regulating pensions and the retirement income sector. One aim of this strategy is to promote a consistent approach to assessing VfM across the pensions industry. We also want to avoid firms or IGCs undertaking work which adds little consumer value, but which adds to consumers’ costs.
Respond to this consultation
We are asking for comments on this Consultation Paper (CP) by 24 September 2020.
Please do not post responses to us at the current time.
We will consider the feedback received and engage directly with stakeholders on these matters. Subject to the feedback, we aim to publish a Policy Statement by the end of 2020.