We are exploring what we can do to increase the take-up of Pension Wise guidance, a free and impartial guidance service for defined contribution (DC) pension consumers.
Why we are consulting
We are consulting on new rules to implement the provisions of the Financial Guidance and Claims Act 2018. These require us to make rules for pension providers to ensure consumers have either received or opted out of receiving Pension Wise guidance when they apply to access or transfer their pension savings. Our proposed rules give consumers a final opportunity to take Pension Wise guidance at the point they wish to access their pensions savings.
What we are proposing
When a consumer has decided, in principle, how to access or transfer for purposes of accessing their pension savings, our proposed rules will require pension providers to:
- refer the consumer to Pension Wise guidance
- explain the nature and purpose of Pension Wise guidance and encourage the consumer to take the guidance
- offer to book a guidance appointment and where the consumer accepts that offer, book the appointment or provide the consumer with sufficient information to book their own appointment
We will also require providers to confirm and record whether the consumer:
- declined the offer to receive the Pension Wise guidance (opted out)
- received Pension Wise guidance or
- received regulated advice
We also want to hear other ideas about how to increase the take-up of Pension Wise beyond our proposed rules for consultation.
Who this applies to
- providers of pensions
- operators of self-invested personal pensions
- individuals and firms providing advice and information in this area
- distributors of financial products, in particular retirement income products
- trade bodies representing financial services firms
- consumer representative bodies
- charities and other organisations with a particular interest in retirement and/or financial services more generally
- individual consumers
We are asking for comments on this Consultation Paper by 29 June 2021.
You can send them to us using the online response form on our website.
Or in writing to:
Financial Conduct Authority
12 Endeavour Square
London E20 1JN
Telephone: 020 7066 7418
Email: [email protected]