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Partner organisation activity

Department for Work and Pensions (DWP)

As detailed in the previous update, the Pension Schemes Act 2021 allows DWP to compel pension schemes to make individuals’ data available to them via dashboards, while ensuring dashboards are properly regulated.

The Act provides scope for innovation and to engage a broad range of users by allowing for multiple dashboard service providers. The Money and Pensions Service will also develop and host a publicly-owned dashboard.

State Pension information will feature on pensions dashboards to give people a comprehensive view. DWP has already made the necessary changes alongside colleagues in HM Revenue & Customs and will continue to progress this work, to ensure that the infrastructure required to provide State Pension information will be in place ahead of the first publicly available dashboards.

DWP continues to work closely with its delivery partners to develop secondary legislation. This collaborative working is essential to advance the legislative position, informed by user research, insights from the regulators and building on extensive engagement with industry and other interested parties. This includes the recent Call for input on staging led by the Pensions Dashboards Programme.

The DWP plans to consult on its proposals for secondary legislation with interested parties this winter, focusing on data requirements, staged onboarding, the compliance regime and consumer protection. DWP’s aim is to lay draft regulations before Parliament for debate in 2022, to remain on schedule to support the delivery plan set out by PDP, which indicated that the first pension schemes will be compelled to make data available to users via dashboards in 2023.

The regulators working together

 

The regulators are preparing for duties to go live in 2023 through:

  • providing input and advice to the DWP on the design of the legislative framework
  • providing insights on their regulated communities to inform the staging proposals put forward in the call for input
  • exploring in increasing detail the systems and data they require from the ecosystem so they can deliver their function

Financial Conduct Authority (FCA)

The rules the FCA will make for the providers of personal and stakeholder pension schemes will take account of the corresponding legislative framework that the Government will introduce for occupational pension schemes. FCA will consult on those rules in due course, but it is clear there are steps firms could take now to prepare for dashboards. The FCA encourages the pension providers it regulates to engage with the material on the PDP’s data providers hub at the earliest opportunity.

The government has committed to making the provision of a qualifying pensions dashboard an activity that is subject to FCA regulation. Therefore, when the appropriate legislative change is made, any party that wishes to become a pension dashboard provider must obtain FCA authorisation to do so. Once authorised, the pension dashboard provider will be subject to FCA regulation.

The FCA will consult next year on the full set of regulatory requirements. The consultation will:

  • have regard to the emerging detail of the ecosystem design and build 
  • take into account its role in the areas of shared responsibility on which it is working collaboratively with PDP, MaPS, and TPR and government
  • be informed by PDP’s user research and prototype testing

Parties interested in becoming qualifying pension dashboard providers can find further information about the standards that apply to all FCA regulated firms here.

The Pensions Regulator (TPR)

TPR recognises that preparing for dashboards is a significant enterprise for the thousands of pension schemes it regulates, and their advisors/service providers.

TPR is gearing up to provide clear, targeted and timely education to trustees and managers on their new duties from 2022. It will also be engaging with the advisors and service providers, which trustees depend upon, to ensure trustees receive the support they need.
 
Pensions dashboards’ success depends on schemes’ participation, so in addition to planning education and engagement, TPR is also working to define and deliver the operational processes it will need to monitor, and if necessary, enforce, compliance with the duties from 2023.
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