Following two consultations, the FCA has published its policy statement setting out the regulatory framework for pensions dashboard service (PDS) firms.
In addition to the standards the FCA expects of all regulated financial services firms, the final framework sets out requirements specific to firms operating a PDS intended to balance risks and opportunities, including:
- Measures designed to protect PDS users from harm, including disclosure requirements, marketing restrictions , scam prevention measures and prudential requirements; and
- Measures to support PDS users in understanding and engaging with the dashboard’s ‘view data’. This includes architecture rules requiring PDS firms to present next step options and exit communications to consumers
The FCA has not yet opened the gateway to received applications for authorisation and variation of permission. It will not do so until the Government and the Pensions Dashboard Programme have produced all the necessary information for firms to design and build a PDS, therefore allowing firms to show they are ready, willing and organised to undertake the new regulated activity.