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Regulator confirms DC code consultation in November

Regulator confirms DC code consultation in November

The Pensions Regulator has confirmed that a formal consultation on its defined contribution code of practice will begin in November.

Earlier this month, their executive director for defined contribution Andrew Warwick-Thompson has said a consultation was likely by the end of September, but a spokesman explained to FTAdviser that this was an internal review, following a ‘soft consultation’ involving some industry stakeholders.

Once this is complete, a full industry consultation will run through the winter, although the regulator added that “there shouldn’t be too many surprises”.

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It will incorporate the new rules into the 2013 code of practice, which set out guidance to help trustees meet the underlying requirements of pensions legislation.

Mark Baker. a pensions partner at law firm Pinsent Masons, commented that there is an “urgent need” for the regulator to produce guidance that is practical, user friendly and shorter than the existing guidance.

“The regulator should hold back from trying to define best practice,” he stated. “The DC market is changing so quickly that the regulator isn’t in a position to tell trustees exactly how they should be operating.”

“The DC guidance needs to follow the model that the regulator has used so successfully in DB - carefully observing good practice and then drawing up guidance that’s well-balanced and to the point.”