Pensions  

Calls for legal duty on pension dashboards

Calls for legal duty on pension dashboards

Companies providing a pensions dashboard should have a legal obligation to put savers' interests first, according to a report commissioned by The People's Pension.

The report was written by consumer champion Dominic Lindley, an independent consultant and a member of the FCA's Financial Services Consumer Panel.

It has called for a new legal duty, akin to a fiduciary duty, on dashboard operators to prioritise the interests of savers, overseen by The Pensions Regulator.

The report also recommended the creation of a statutory body to oversee pensions dashboards in the long-term, with the power to set standards and a clear statutory remit to act in the best interest of consumers.

Gregg McClymont, director of policy for The People’s Pension, said: "Government figures suggest that a huge number of people, up to 18 million, could eventually access pensions dashboards. The opportunities are vast but so is the potential for consumer detriment.

"The Port Talbot steel worker’s pension scandal shows how easily things can go wrong. The strongest form of consumer protection is fiduciary law, so we’re calling on the Government to pass legislation to place such a legal duty on all dashboards operators.

"We’re also calling for pensions charges to be disclosed on dashboards from the outset, for consumers to have a clear legal right to all their financial data, and for the creation of a Pensions Dashboards Authority armed with a clear statutory remit to act in the best interest of consumers.

"This package of measures can strengthen the governance of pensions dashboards in the public’s interest."

The report stated giving consumers the legal right to all their financial data would allow them to see a total picture of their finances across pensions, banking, investments, and insurance.

damian.fantato@ft.com