On the go: The Financial Conduct Authority is planning to access how to drive value for money in pensions during accumulation, its business plan for 2021-22 has revealed.
In the document, published on Thursday, the watchdog stated that it plans to “design and launch an evidence-led view” on this topic this year.
The FCA will be working jointly with the Pensions Regulator to “help ensure comparability across products, using evidence and insight on what information firms should give consumers and how these disclosures can help them in making informed choices”.
TPR itself announced in March its intention to publish a discussion paper to assess value for money as part of its new corporate strategy.
The FCA stated that its goal in this area is to ensure that “pension providers offer good value products, and consumers use guidance and support to help them make effective choices”.
It added: “How firms structure, design and charge for pension products has a significant impact on almost all retail investors. This is regardless of whether they are offered by an FCA-authorised firm or through a scheme regulated by TPR.”
In 2021, the watchdog is also planning to launch a consultation on changes for non-workplace pension providers, to help ensure “consumers are offered an appropriate default solution where they need it”.
During 2022, the FCA will be assessing how the rules that help consumers make choices at the point of retirement have been working.
