Ahead of the expected Pension Schemes Bill next year, the FCA has consulted on a new value for money framework for pension providers. This consultation follows months of joint work between the Pensions Regulator, FCA and the Department for Work and Pensions.
Responding to this consultation, we’ve highlighted our support for driving better returns for savers, and the need for consistent regulation across both the contract and trust-based pension market. This comes as ABI data continues to show that both contract and trust-based providers remain popular for workplace pension saving. The first half of this year saw £16.5bn flow into contract-based schemes , while Master Trusts received £16.7bn. (ABI, 2024).
Yvonne Braun, Director of Long Term Savings, Health and Protection said:
“The Value for Money Framework could transform the workplace pensions market by driving a more holistic assessment of pension schemes for their overall value proposition, and improving the comparability of schemes. We fully support both aims as they should benefit savers.
It will be crucial to further finesse the metrics to guard against duplicating the Consumer Duty, and to ensure the proposed red-amber-green ratings and their implications do not trigger market disruption. It is also very important that the framework is applied to the trust and contract-based market consistently and at the same time. We are looking forward to working with the FCA and the DWP on this.”
Read our consultation response