CISI demands transparency on dashboard cost

CISI demands transparency on dashboard cost

The Chartered Institute for Securities & Investment has called on the government to be transparent about the cost of the new pensions dashboard from its outset.

In response to the Department for Work and Pensions’ consultation paper published in December last year, the CISI said its members responded positively to plans to introduce a new dashboard but asked for "transparency at the outset" on any proposed costs to the advice community.

Members also expressed concern over who will be expected to fund the set up and maintenance of the dashboard, claiming the financial planning profession was already facing "increasing calls" on its financial resources.  

The CISI suggested the decision as to the amount organisations should pay towards the dashboard should be deferred until "such time as the dashboard is running effectively" and it becomes clear who stands to gain the most from the service.

In its consultation paper, the government revealed it intended to introduce multiple dashboards with the first expected this year.

However, in its response to the proposals the CISI argued only a single dashboard should be developed to ensure consumers are not confused by several potential offerings.

The CISI said: "The whole purpose of the dashboard is to have one single point of information for the public.

"Multiple dashboards will only serve to discourage use of the dashboards as people may have difficulty in tracking information in different places."

The CISI also suggested consideration be given to include all pensions within one dashboard and one government funded helpline, even if all details cannot be fully shown.

It said: "There is huge scope for misinterpretation of this information without suitable advice however it is presented.

"Where pensions contacts are invested in esoteric, illiquid investments, these should also be flagged on the system to ensure everything is included in one place."

The institute warned unless every provider and member of the public allows all their pension information to be listed on the dashboard, there is a real danger its usefulness will be "severely limited".

It said: "The result of such a restricted dashboard might mean that it would only be used for the checking of state benefits and employer schemes."