FCA-regulated pension providers are generally aware of the pensions dashboards initiative, but readiness varies, especially between large and small firms.
According to a survey by Pensions Dashboards Programme (PDP) as part of its report titled ‘Personal pension providers’ readiness for pensions dashboards’, 95 per cent of firms know their ‘connect by’ date, and 97 per cent have reviewed the FCA’s Policy Statement 22/12 or PDP guidance. However, small firms, those with under 5,000 pension pots, are less engaged, with only 82 per cent reading the PDP guidance compared to 100 per cent of large firms.
The survey finds that 83 per cent of firms plan to meet their deadlines, and 82 per cent intend to use third-party suppliers to connect to the digital system. Larger firms are more likely to connect directly, with 38 per cent of those managing over 500,000 pension pots planning to build their own interfaces.
In terms of data digitalisation, 78 per cent of firms already store all customer data digitally, and 82 per cent have digitised matching and contact data. Only 24 per cent of firms are fully confident in the accuracy of their data, which could create challenges as they work to meet the required standards.
Additionally, while 80 per cent of firms are confident in matching customer records, that confidence drops to 67 per cent when it comes to providing accurate and timely pension value estimates.
According to PDP, since the survey, the pensions dashboards initiative has made progress with new guidance being published, and some firms have completed the technical connection process.
However, while the industry is largely prepared, small firms still face difficulties in meeting deadlines and ensuring their data is accurate.
