Legislation and regulation
The Pension Schemes Bill (introduced to Parliament in January 2020) creates a legislative framework for pensions dashboards, providing the Secretary of State with a range of powers such as setting qualifying standards for dashboard services and compulsion for pension providers and schemes to provide adequate data within a specified timeframe.
The government has made a commitment to make the provision of pensions dashboards a Financial Conduct Authority (FCA) regulated activity through amendments that HM Treasury will make to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. Those organisations wishing to become pensions dashboard providers will have to apply for FCA authorisation.
The role of regulators
The draft legislation currently before Parliament sets out significant roles for The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA). They will regulate the compliance of pension providers and schemes in providing data to individuals via their chosen dashboard.
- TPR will regulate trust-based and public sector pension schemes.
- FCA will regulate personal and stakeholder pension schemes.
Department for Work and Pensions (DWP) will develop secondary legislation which will set out the requirements for occupational pension schemes and qualifying dashboards.
We will work closely with DWP and both regulators to make sure that pension schemes and others are clear what is expected of them. Guidance and information will be provided on the new legal duties and the standards that must be met.