Regulation  

FCA asks industry for help to fight pension risks

They are asking industry how security around client money can be improved and what role they should play in further driving up standards in this area.

Work undertaken following the FCA’s Asset Management Market Study will have a positive impact on value for money, the paper stated.

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But the regulators are asking whether they can do more in the field, having already introduced controls such as charge caps on default funds and exit charges. 

The regulators are also asking for views on macro-economic influencers and have identified a number of factors, they think, will change the pension landscape going forward.

These include low interest rates and increased volatility; changing demographics; increasingly stretched household finances; technology, including robo-advice; and labour market changes.

The regulators stated: “While there is a clear role for both the FCA and TPR, we also recognise that harm is affected by several factors that we cannot tackle alone, for example, the level of consumer confidence in pensions, the level of real interest rates and levels of retirement saving. 

“We must keep working with other regulators and the government to protect customers.”

It added: “There are a number of factors outside the sector, which we have to be alert to but cannot change, such as the macro-economic environment.“

carmen.reichman@ft.com