The pensions Guidance Service will be paid for by financial services firms and those specialising in pensions, the FCA has said.
In a 38-page FCA consultation paper published this week, Retirement Reforms and the Guidance Guarantee, the regulator set out how it proposed to implement the government’s pension reforms announced in the March Budget.
The FCA outlined suggestions as to how it would fund the Guidance Service, which will be rolled out in 2015 to help advise pensioners on their options, as well as how it would fulfill and deliver the guidance guarantee which will accompany the service.
The cost of the service would be borne by the industry. The FCA said: “It will be funded by firms likely to benefit from more engaged consumers.”
It suggested the funding came in the form of a levy, although very small firms may be exempt.
The regulator said it would be expected to maintain and monitor the implementation of the Guidance Service and suggested a suite of four principle-based standards, that a) aim to ensure that the guidance is impartial, b) that it creates consumer trust, c) that the framework works for both contract and trust-based pension schemes and d) that guidance is helpful.
The deadline for responses to the consultation is 22 September this year.
