Workplace personal pensions – FCA consults on rulesPrint publication
On 6 August 2014, the Financial Conduct Authority (FCA) issued a consultation paper setting out rules that will require providers of workplace personal pension schemes to establish and maintain Independent Government Committees (IGCs).
Broadly speaking, workplace personal pension arrangements include only personal pension schemes, together with stakeholder pension schemes that employers use for automatic enrolment purposes or alternatively make available to their employees.
The consultation paper sets out the key duties that the IGC will be responsible for which include:
- reviewing and evaluating the value for money of such workplace pension arrangements
- acting in the best interests of the relevant policyholders (the members)
- escalating concerns of the arrangements to the FCA if needed. This will involve also alerting scheme members and employers
- proposals to allow smaller businesses with less complex personal pension scheme arrangements to establish a governance advisory arrangement, as an alternative to an IGC.
The deadline for responding on the consultation paper is 10 October 2014. It is understood that the FCA intends to publish the rules in a policy statement early next year and we would expect such rules to come into effect from April 2015.