TPR and FCA outline closer working relationship

The Financial Conduct Authority and The Pensions Regulator have revealed plans on how they will work together over the next decade, in a bid to tackle low levels of retirement saving.

A document released yesterday, 19 March 2018, outlined how the two regulatory authorities have been “working jointly” on their pension strategies to tackle the risks facing the industry and have asked for input from key stakeholders.

Despite having two separate remits, the document said they will work on factors affecting accumulation and decumulation phases such as scams, the Work and Pensions Committee’s pension freedoms inquiry, the auto-enrolment review and the defined benefit white paper.

Broadly, The FCA’s remit focuses on “ensuring the appropriate number of consumer protection and competition”, while TPR helps to drive up standards of scheme governance, including scheme's management of fund risk and ensuring their staff are automatically enrolled.

Just Group communications director, Stephen Lowe, said: “It’s essential that TPR and the FCA continue working closely together to identify and mitigate risks that are preventing pension savers from getting good value. One area they recognise is in need of scrutiny is the need to support good choices and outcomes at retirement.

“At the moment government policy is strong on encouraging pension saving but weak on ensuring savers take the guidance available to help them decide how best to use the money.”

In the document the pair outline the challenges for members in the accumulation phase and the decumulation phase, with a particular focus on an inadequate level of income in retirement.

They document said: “While there is a clear role for both the FCA and TPR, we also recognise that this 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.”

Lowe suggests that default guidance must be introduced in order to create “a far more robust framework” in the decumulation process.

He added: “Our view is that default guidance should be introduced as part of the Financial Guidance and Claims Bill because currently regulators are effectively working with one hand tied behind their back.

“This bill is a chance for government to send a clear instruction to regulators.

“It’s clear the current rules aren’t having the desired effect in encouraging take-up of guidance or advice. As Michelle Cracknell recently told MPs on the Treasury Select Committee: ‘A nudge is not sufficient – there needs to be an intervention such as a mid-life MOT or default guidance’.”

The pair said they will now work closely with stakeholders to understand the biggest current and potential risk facing the industry and that it will publish their final strategic approach later this year.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.