The Pensions Regulator confirmed it is stepping up resources in order to regulate the DB consolidation sector.
Talking at the Corporate Adviser 2018 summit, TPR executive director of regulatory policy, analysis and advice David Fairs, says the regulator was planning for an increase in the number of providers in this area.
Currently there are two DB consolidators, which Fairs says were well-resourced with sound business plans.
He says: “We don’t know what might happen. It could be feast or famine, but the assumption is that if one employee benefits consultancy moves into this area, or one insurer, others may quickly follow suit, and there could be a proliferation of providers.”
If this happens Fairs says it is imperative that the regulator has the resources to check that the are adequately financed and have the same positive attitudes to member outcomes.
Fairs says that while this is not a problem at present, it is an issue on the regulator’s radar. “The question is how we use our powers to stop or control what could potentially happen in this sector.”
“This is a new market and it is difficult to predict exactly what will happen. We don’t know quite how big this market is going to be.”
