The company’s regulatory strategy director said the Pensions Regulator already has “enough on its hands” with auto-enrolment and could be overstretched if it took over from the FCA in monitoring individual advice.
She said: “Our preferred solution would be to encourage the two regulators to work closely together to ensure no regulatory gaps or overlaps.”
Contrasting the two regulators’ approaches, Ms Smith said she “expected” The Pensions Regulator to show it has teeth and impose more fines in the future. But she urged caution against a tougher regime to match the FCA. She added: “The FCA’s approach promises to be quite intrusive, while The Pensions Regulator’s approach is to enable and educate, not just enforce.”
Nick Lincoln, director of Hertfordshire-based Values to Vision Financial Planning, said: “I wonder if it would make that much difference if there was one rather than two overseeing all aspects of workplace pensions. The rational side of me says it could save confusion, but it doesn’t strike me as a life-changing issue.”
