Summarising the ABI's response to the consultation,
Justin Wray, Assistant Director, Head of Long-Term Savings Policy at the ABI said:
“We fully support the FCA, TPR and DWP in their ambition to move workplace defined contribution pensions beyond a ‘cost is king’ approach and towards a stronger focus on overall value for savers.
"The incoming Value for Money framework has the potential to drive significantly better outcomes for savers and greater comparability between schemes. However, given the scale, complexity and implications of the new reporting requirements, a ‘dry run’ in the first year before assessments are binding and made public is essential to ensure credibility. Without this trial phase, there is a real risk that errors, inconsistent interpretations or data anomalies may lead to wrong assessments of value for money, with damaging implications both for scheme members and the regulatory framework.”
Our full consultation response can be found here.