2018年-FCA英国金融行为监管局_ms16_1_3_annex_2_10页_343kb

Retirement Outcomes Review - Annex 2: Regulatory Developments in the Market

Core Content

This annex outlines key regulatory developments and changes in the UK pensions and retirement income market from 2015 to 2018, with a focus on how these changes impact consumer outcomes and support the work of the Retirement Outcomes Review (ROR). The FCA and TPR have been actively working to enhance transparency, competition, and consumer protection across various aspects of the pensions market.

Main Regulatory Developments

1. Review of Non-Advised Drawdown Sales

• The FCA conducted a thematic review to assess whether providers are giving consumers sufficient information to make informed decisions about accessing retirement benefits.
• While providers generally offer adequate information, some consumers are not engaging with it, leading to suboptimal choices.
• Key issues include:
  • Early access to benefits before intended retirement.
  • Lack of consideration for investment choices, especially among those only seeking tax-free cash.
• The FCA has provided feedback to providers and asked them to review their sales processes and training.

2. Platforms Market Study

• Investment platforms are becoming a key channel for accessing retirement investments.
• The market has grown significantly from £108 billion in 2008 to £592 billion in 2016.
• The FCA is examining whether platforms help consumers make good decisions and whether they offer value for money.
• The study follows the Asset Management Market final report from 2017 and will affect the pensions sector.

3. Competition in Non-Workplace Pensions

• The FCA published a discussion paper in February 2018 to assess the effectiveness of competition in the non-workplace pensions market.
• It found that a significant proportion of pension transfer advice was unsuitable.
• New rules and guidance were introduced to improve the quality of advice and increase adviser confidence.
• The FCA continues to monitor the market and consult on further changes.

4. Amends to the Perimeter Guidance Manual (PERG)

• The FCA updated the PERG to clarify what constitutes a personal recommendation, addressing provider concerns.
• It explains that presenting a product linked to a particular investment objective (e.g., 'pathways') does not automatically count as a personal recommendation.
• This aims to reduce the risk of providers being overly cautious and to encourage innovation.

5. Implementing Information Prompts in the Annuity Market

• The FCA introduced rules requiring annuity providers to inform consumers of potential savings from switching providers.
• This was part of addressing weakened competition in the annuity market, as identified in the RIMS study.
• The rules came into force on 1 March 2018.
• Additional measures are being considered to increase awareness of enhanced annuities and income-driven quotes.

6. Transaction Cost Disclosure in Workplace Pensions

• Since January 2018, FCA-regulated firms managing DC workplace pensions must disclose transaction costs to scheme governance bodies.
• This supports transparency and helps governance bodies assess value for money.
• The DWP is also working on similar disclosures for occupational pension scheme members.

Other Developments in the Pensions Market

7. FCA and TPR's Joint Pensions Strategy

• The FCA and TPR are collaborating to develop a joint strategy for addressing risks in the pensions sector over the next 5–10 years.
• A Call for Input was published in March 2018 to gather stakeholder views, which will inform the final strategy document.

8. Automatic Enrolment Review

• Automatic enrolment was introduced in 2012 and will be fully rolled out in 2018, applying to all employers.
• Minimum contributions are increasing gradually from 2% to 5% and then to 8% of earnings.
• The DWP identified three key issues with current automatic enrolment:
  • Low saving levels.
  • Coverage gaps for the self-employed.
  • Low consumer engagement with pensions.
• Future measures aim to address these by lowering the age criteria and removing the earnings limit.

9. Single Financial Guidance Body (SFGB)

• The SFGB will consolidate financial guidance services, including debt advice, money guidance, and pensions guidance.
• It is expected to be launched in autumn 2018 and will be funded by industry levies.
• The FCA will work with the SFGB to develop a drawdown comparison tool.

10. Pensions Dashboard

• The DWP is developing a pensions dashboard to help consumers view their pension savings across multiple pots.
• This aligns with recommendations from RIMS and FAMR.
• The dashboard is expected to improve consumer understanding, trust, and engagement with their pensions.

11. Work & Pensions Committee Inquiries

• The WPC launched inquiries into pension freedom and choice, and Collective Defined Contribution (CDC) schemes.
• The first inquiry led to a report in April 2018, which informed the FCA's work.
• The second inquiry explores the potential of CDC schemes, which are a hybrid of DB and DC pensions, and their benefits for savers and the economy.

12. Pan-European Personal Pension Product (PEPP)

• The European Commission proposed the PEPP in June 2017 to create a pan-EU pension product.
• The goal is to enhance consumer choice and support the Capital Markets Union (CMU).
• The PEPP is not intended to replace national schemes but to complement them.
• Its applicability in the UK will depend on post-Brexit arrangements with the EU.

13. Directive on Institutions for Occupational Retirement Provision (IORP II)

• IORP II, effective from 12 January 2017, aims to improve governance, risk management, and transparency in occupational pension schemes.
• Member States have two years to transpose the directive into national law.
• The Pensions Regulator is the Competent Authority for IORP II.

Key Takeaways

• The FCA has been actively working to improve transparency, competition, and consumer protection in the pensions market.
• Many of these developments support the ROR's goal of improving retirement outcomes.
• The focus is on ensuring consumers receive suitable advice, understand their options, and make informed decisions about their retirement savings.