The strategy identifies key issues which contribute to the prospect of people not having adequate income, or the income they expected in retirement.
To tackle the main drivers of this harm, the FCA and TPR set out a vision for the pensions sector over the next 5 to 10 years. This includes making clear their areas of priorities and how to address fundamental changes in the sector.
The regulators have delivered a strategy that aims to provide pensions and retirement income products that support people and increase financial provision for later life; pensions that are well funded, well governed and deliver value for money; and which provide the tools to enable people to make well informed decisions.
The strategy also outlines a number of ways in which the FCA and TPR will work together going forward. This includes 2 new priority areas for joint action. The first is a strategic review of the entire consumer pensions journey – taking an in-depth look at what tools are needed to enable people to make considered decisions about their pensions. The second is using our powers to drive value for money for members of pension schemes, including the setting and enforcement of clear standards and principles where relevant.
Having already launched a joint campaign to combat the risk of savers being scammed out of their pensions, the 2 regulators are already well equipped to work collaboratively. However, the publication of this strategy marks a new stage in the evolution of both regulators, and in their working relationship.
Christopher Woolard, FCA’s Executive Director of Strategy and Competition, said:
‘We have worked closely with TPR to produce a co-ordinated and cohesive strategy that will produce positive results for people in or approaching retirement. But success in delivering this strategy doesn’t just depend on action by us.
‘With the support and collaboration of the government, industry and consumers themselves, we can deliver an environment which contributes to people having higher incomes in their retirement.’
Lesley Titcomb, TPR’s Chief Executive, said:
‘The joint strategy further strengthens our close working relationship with the FCA so that through our new approach we can together address earlier any issues that threaten the retirement outcomes for pension savers.
‘Our goal is to ensure the people who run workplace pensions meet our expectations so that members can have confidence their savings are protected. We are being clearer, quicker and tougher in the pursuit of this goal and working collaboratively with the FCA is vital.’
Notes to editors
- Regulating the pensions and retirement income sector: our joint regulatory strategy
- TPR is the regulator of work-based pension schemes in the UK. Its statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of TPR’s functions under Part 3 of the Pensions Act 2004 only).
- FCA and TPR joined forces in August to launch a new national awareness campaign about pension scams. For tips on how to identify a pension scam and advice on what to do if you fear you have fallen victim to a scam, visit www.fca.org.uk/scamsmart.
- FCA and TPR’s Call for Input in March 2018 identified trends as likely to drive change across the pensions sector in the next 5-10 years.