FCA seeks views on non-workplace pensions

FCA seeks views on non-workplace pensions

The UK Financial Conduct Authority (FCA) is seeking views on the market for non-workplace pensions in a bid to find out whether it is sufficiently competitive.

Non-workplace pensions represent around £400 billion in assets under management, or more than double the amount invested in contract-based defined contribution workplace pension schemes, according to the FCA.

The FCA is seeking feedback to better understand the market for non-workplace pensions, including whether competition is working well and if there are issues that need to be addressed in order to protect consumers.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “In recent years we, alongside the Department for Work and Pensions and the Pensions Regulator, have taken a number of steps to address weaknesses in the workplace pensions market. We believe it is now right to look at the other side of the picture and assess whether competition is working in non-workplace pensions.”

“A diverse group of people save into non-workplace pensions and it is a growing market. We want to hear from anyone with an interest in this subject about how they think the market is working.”

The FCA is looking to understand how the differences and similarities between the workplace and non-workplace markets affect competition and consumer outcomes.

The particular areas of focus include product complexity, consumer motivation and ability to invest, fund choice and the use of defaults, competition on charges, and whether customers can identify and freely move to more competitive products.

The FCA is seeking feedback by 27 April 2018. It will consider responses and will then look to collect data to better understand any problems identified.

Categories: News, UK Pensions

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