FCA, the DWP and the Pensions Regulator are seeking views on proposals to require trustees and managers of DC occupational pension schemes, and the providers and IGCs of workplace personal pension schemes to disclose, assess and compare the value for money of their schemes. The value for money framework aims to increase comparability, transparency and competition, and help trustees to make more informed investment and governance decisions and employers better to compare DC schemes when choosing one for their employees. The consultation shows how the existing market makes it hard to assess the VFM – the regulators are keen to point out that cost should not be the sole driver.
The consultation sets out a proposed phased approach and asks specific questions on metrics relating to investment performance, costs and charges, quality of services, disclosure templates and publication timings, assessing value for money, the VFM framework and Chair’s statement, FCA-specific issues and impacts.
Consultation closes on 27 March 2023.