Pensions UK: What's new this week - 10 May 2021
10 May 2021
Welcome to your weekly update from the Allen & Overy Pensions team, covering all the latest legal and regulatory developments in the world of occupational pensions.
This week we cover topics including: a consultation on a stronger nudge to pensions guidance; and a new industry working group on DC transfers.
- FCA consults on nudge to guidance
- New PASA working group on DC transfers
- Pensions Academy Online – this week
FCA consults on nudge to guidance
The Financial Conduct Authority (FCA) is consulting on proposals for a stronger nudge to pensions guidance by FCA-regulated pension providers. A similar obligation for occupational schemes to refer individuals to guidance will be implemented by regulations, but these have not yet been published for consultation: read about the policy proposals.
The FCA is now consulting on obligations that would apply where a person has decided, in principle, how they wish to access their pension savings, or to transfer accrued rights in order to access savings (this purpose would be assumed where a person aged 50 or over is seeking a transfer). Under the proposals, providers must: explain the nature and purpose of Pension Wise guidance and that it is free, and encourage the person to take it; explain that they may take regulated advice (at their own cost); and offer to book a guidance appointment. Providers would also need to confirm and record whether the person received Pension Wise guidance or regulated advice, or opted out.
The FCA is also seeking more general feedback on how to increase the take up of Pension Wise and to support consumers in accessing the right information and guidance.
The consultation closes on 29 June 2021. The FCA is aiming to publish its final policy statement in Q4 2021.
New PASA working group on DC transfers
PASA has launched a new working group on DC transfers, aiming to produce new guidance in early 2022. The working group’s purpose includes identifying and reducing or eliminating barriers to faster and lower-risk transfer processing, and setting out good practice standards for administrators to follow when processing DC transfers.
Read more about the working group and its priorities.
Pensions Academy Online – this week
Our latest Pensions Academy is taking place this week. Please click here to register for the following webinars:
Wednesday 12 May at 9.30am to 10.30am – Pension scheme investing: the sustainability revolution
Pension scheme investment decisions have been an area of increasing regulatory focus in recent years, but the TCFD-style reporting requirements that are due to affect some schemes from 1 October 2021 are probably the most significant change yet. Experts from our investment team will guide you through the changes they are seeing in this area of increasing public interest and political attention.
Friday 14 May at 9.30am to 10.30am – Legal update: what’s now and what’s next?
It’s already been a busy year for consultations and new developments but there’s much more to come as the government and regulators work through their 2020 backlog. Members of our Pensions team will update you on the current state of play and what’s on the horizon to shape your future agenda.
All sessions will be recorded and made available online.