FCA has extended the deadline for responses to its call for input on the Pensions Consumer Journey, and now asks for comments by 30 July. The purpose of the exercise is to help FCA understand consumer behaviour at key...
Author - Gavin Ellison
Gavin Ellison
TPR fines FCA Pension Plan
The Pensions Regulator has fined the FCA Pension Plan £2,000 for a non-compliant chair’s statement, the maximum penalty which it can levy for this type of breach. The chair’s statement requires trustees of...
FCA introduces new duties for Independent Governance Committees
The FCA has published a policy statement introducing new duties for Independent Governance Committees (IGCs). Firms which offer workplace personal pension schemes (including life insurers and some SIPP operators) are...
Changes to retirement “wake-up packs” take effect
The FCA has published feedback to its consultation on a package of amendments to improve the information given to consumers at retirement by their pension providers. The changes relate to ‘wake-up’ packs (which give...
More pressure on fund managers to follow ESG voting instructions?
The push to require pension scheme trustees to develop voting policies on environmental, social and governance (ESG) issues (which are considered to be financially material to their investments) is meeting some...
FCA issues statement for SIPP operators
The FCA has issued a statement following the administration of Berkeley Burke SIPP Administration Ltd (BB) and the administrator’s decision to discontinue BB’s judicial review appeal. BB was involved in...
Prudential appeals annuity transfer judgment
Prudential Plc has confirmed that it has lodged an appeal against the High Court’s refusal to approve the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company to Rothesay Life. The...
No strong case to merge Ombudsmen
“There is not a strong case to merge TPO and FOS at the present time” is the conclusion of a tailored review of the Pensions Ombudsman (TPO) published by the DWP. A merger between the two Ombudsmen...
High Court refuses Prudential’s annuity transfer
The court process is not merely a “rubber stamping” exercise. The High Court has refused to sanction the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company (PAC) to Rothesay...
Regulators launch new ScamSmart campaign
The FCA and the Pensions Regulator are running another media campaign over the summer to warn the public about pension scams. With new research suggesting that 42% of pension savers are potentially at risk (which would...
FCA introduces investment pathways for pensions drawdown
The FCA has published a policy statement introducing ‘investment pathways’ for consumers with pension savings who enter drawdown without taking advice. In 2018, the FCA published the final report of its Retirement...
Insurance broker banned for seven years for pension scheme negligence
An insurance broker has been banned from company directorships after failing to keep adequate records, not providing information to the tax authorities and not providing members of a pension scheme with up to date...
FCA finds numbers of defined benefit transfers “deeply concerning and disappointing”
The FCA is taking further action on defined benefit transfers following published data about the number of recommendations being made to pension scheme members to transfer out of their defined benefit (DB) schemes. The...
Pension plans have to put fiduciary management services out to tender
Pension plan trustees appointing a fiduciary manager for at least 20% of their plan assets will now need to run a competitive tender process. For our more in-depth article, click here. The Investment Consultancy and...
Court upholds fines imposed by Pensions Regulator on master trusts
Appeals by two master trusts against fines imposed by the Pensions Regulator (tPR) for making incomplete annual chair statements have failed. Occupational schemes providing money purchase benefits have to prepare an...
Pension plans must be proactive
We have written an article on how pension plans must be proactive now that the regulator is increasingly taking a tougher regulatory approach.
FCA proposes 2 new duties for IGCs
The FCA is consulting on proposals to extend the remit of Independent Governance Committees (IGCs). The FCA proposes that IGCs, which provide independent oversight of the value for money offered by workplace personal...
The Pensions Regulator’s Stronger Powers
We have written an article on the changes to the powers of the Pensions Regulator in relation to defined benefit schemes, following Government consultation and response.
Will SMCR hold up pension transfers?
Pension scheme members wishing to transfer their benefits from a defined benefit (DB) to a defined contribution (DC) pension arrangement have to take financial advice and trustees of DB schemes are required to check...
UK pension plan gets fraud victory in US
We have written an article on the litigation involving a UK pension plan and a US entity in which it had invested. The pension plan alleged securities fraud on the part of the investee company, and succeeded in winning...
FCA proposes new rules on disclosing administration charges and transaction costs for personal pension schemes
The FCA is consulting on new rules to require scheme governance bodies to publish and disclose information about administration charges and transaction costs to members of personal pension schemes. Similar provisions in...
Pan-European pension product moves a step closer
On 13 February 2019, a new ‘pan-European pension product’ (PEPP) moved a step closer as EU ambassadors endorsed the agreement on a proposed PEPP reached between EU institutions late last year. As a new class...
Government announces new powers to protect pension schemes
The Government has announced new powers to protect pension schemes. Read our article on recent developments.
Government consultation on investment by DC pension scheme
The DWP is consulting on proposals to encourage defined contribution (DC) pension schemes to consider investing in less liquid assets such as smaller and medium-sized unlisted firms, housing, green energy projects and...
Government provides £329 million funding to NEST to meet master trust requirements
The Government has agreed to provide a contingent liability of £329 million to fund the National Employment Savings Trust (NEST) Corporation so that it can continue to operate in the pensions market as a master trust...
Single Financial Guidance Body launched
The Single Financial Guidance Body (SFGB) was launched on 3 January 2019. It brings together three existing providers of financial guidance – the Money Advice Service, the Pensions Advisory Service and Pension...
CMA announces reforms to the investment consultancy and fiduciary management sector
The CMA has announced a range of reforms to the investment consultancy and fiduciary management sector after finding competition problems. This follows an extensive market investigation into the sector which started...
Cost Transparency Initiative develops new cost transparency templates for institutional investors
The Cost Transparency Initiative (CTI) has been established to deliver templates to help institutional investors to access and assess information on costs. The CTI will run a pilot to test the new cost transparency...
Pay directors the same pension contributions as their workforce, says the Investment Association
Directors should receive pension contributions in line with the rate given to the majority of the rest of the workforce, according to new Principles of Remuneration published by the Investment Association (IA). The IA...
FCA and Pensions Regulator publish joint strategy
The FCA and the Pensions Regulator have published a joint strategy outlining how they will work together to address changes in the pensions and retirement income sector. The joint strategy sets out four areas of focus:...
FCA finalises pension transfer advice rules
FCA has published feedback and final rules and guidance following its consultation on improving the quality of pension transfer advice. Since the introduction of “pension freedoms” in 2015 members have had...
CMA brings forward investment consultant report date
The CMA has announced that it is bringing forward the date for publishing its final report on its investigation into the supply and acquisition of investment consultancy and fiduciary management services in the UK...
Regulators launch new campaign to tackle pension scams
The FCA and the Pensions Regulator have launched a joint advertising campaign to raise awareness of pension scams, following research they have conducted which shows that pension scam victims each lost an average of...
FCA proposes further consumer support and protection in the retirement income market
The FCA has launched a consultation on a package of measures designed to protect consumers, improve engagement and promote competition in the retirement income market. Alongside the consultation, the FCA has published...
FCA confirms that pension schemes will not need to start clearing OTC derivatives when EMIR exemption expires on 16 August 2018
On 3 July 2018, the European Securities and Markets Authority (ESMA) published a statement on the clearing obligations for pension scheme arrangements under the European Market Infrastructure Regulation (EMIR). EMIR...
Greater scrutiny of corporate transactions and punitive measures for wrong-doings
The Government has released a consultation document as part of its programme of change for defined benefit pension schemes. Protecting Defined Benefit Pension Schemes – A Stronger Pensions Regulator contains proposals...
Pensions Regulator CEO to step down
The Chief Executive of the Pensions Regulator (TPR), Lesley Titcomb, is stepping down at the end of her four year term in February 2019. Since she became Chief Executive in 2015, TPR has focused on becoming a more...
Carillion inquiry criticises regulator
Carillion’s rise and spectacular fall was a story of “recklessness, hubris and greed”. Last week, the Work and Pensions Committee and the Business, Energy and Industrial Strategy Committee published the final...
Tribunal agrees Box Clever support
The Upper Tribunal has decided that it is reasonable for the Pensions Regulator to require companies from the corporate group of ITV to provide support for the Box Clever Group Pension Scheme. The scheme has 2,800...
RBS to pay £3.5bn to pension scheme ahead of ring-fencing
Royal Bank of Scotland (RBS) has agreed to pay contributions of up to £3.5 billion to its pension scheme in readiness for UK ring-fencing legislation taking effect from 1 January 2026. RBS has agreed a Memorandum of...
The future of the defined benefit system
The funding deficits of defined benefit (DB) pension schemes have made news headlines in recent times, following the difficulties encountered by the British Steel Pension Scheme and some high profile business failures...