Financial Conduct Authority gives concessions to new pension rules
05 February 2020
The Financial Conduct Authority (FCA) has acknowledged industry concerns about its proposed new costs and charges regime for workplace pension schemes and agreed that in the first year, the rules will only apply to default funds.
Under the new rules, which come into effect from April 2020, the bodies will need to publish the costs and charges imposed on scheme members, including an illustration of the compounding effect of the aggregated costs and charges, free of charge at least yearly.
They will also need to ensure all scheme members get an annual communication which includes a brief description of the most recent costs and charges information available and how it can be accessed.
But following industry concerns about the volume of information required, the FCA confirmed that its new rules surrounding the disclosure of costs and charges information on workplace pensions will be phased in gradually after admitting its implementation timetable was “very challenging”.
The rules come into effect from April 2020, but from 1 January to 31 December 2020, governance bodies, such as Independent Governance Committees and trustees, will only need to report on default funds, with a publication deadline of July 31, 2021.
For all subsequent years information must be provided on all the investment options pension members are able to select.
Full details of all the new rules are available in the policy statement on the FCA website
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