Regulator: Coding for quality — how we're supporting DC

In November this year, we will be publishing a revised DC code of practice for consultation.

It will be short, simple and include enough practical guidance to ensure the standards we set are understood.

It will be clear and unambiguous, leaving no room for uncertainty, and it will seek to set out in one place the standards of conduct and practice we expect of DC trustees when complying with the law.

We have a clear timetable and will be formally consulting from November before the code is laid in parliament next May.

Once published, it will be underpinned in several ways, including guides to support the code and improve scheme quality and member outcomes.

Pension transfers and exit charges

Supporting the government’s consultation into pension transfers and exit charges, we have published the findings of our survey on decumulation options, the prevalence of exit fees and charges, the transfer process and the level of advice in occupational DC schemes.

Overall we consider the findings to be encouraging.

Around a quarter of schemes (27 per cent) had completed a transfer-out since April 6 2015, with larger schemes (61 per cent) more likely to have done so than smaller schemes (10 per cent).

Of the mastertrusts surveyed, 67 per cent had completed a transfer since this date.

Nine out of 10 schemes (89 per cent) said they do not apply an exit cost or charge.

And only a small minority of members (7 per cent) were in a scheme in which exit costs or charges would be levied if a member chose to leave the scheme.

We are also trying to help trustees understand the new DC charges introduced in April.

We recently called upon scheme trustees to ensure they are meeting new requirements brought in by the charges and governance regulations.

This month we have produced a new video, which complements our existing essential guide on the reforms and helps to give a greater understanding of what trustees need to do.

Andrew Warwick-Thompson is executive director for DC, governance and administration at the Pensions Regulator