The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have confirmed they will take a “pragmatic approach” to connection delays caused by third-party issues but stress the legal obligation to meet timelines.
Regulators are now prioritising collaboration and flexibility in addressing dashboard connection delays, with TPR stating it will assess its approach to non-compliance on a case-by-case basis.
TPR emphasises that the connection schedule specified in DWP guidance must be regarded by trustees or managers of occupational pension schemes, as well as by providers of personal and stakeholder pensions, as required by law.
The risk of non-compliance with dashboard requirements may increase if this phased timeline is not followed, and management and trustees must be prepared to provide proof of their regard for this guidance upon request.
According to TPR, it sends letters to all schemes to confirm their connection dates and keeps up a comprehensive industry engagement programme to address capacity-related difficulties as well as other challenges experienced by schemes, administrators, and connection providers.
A TPR spokesperson said: “The staggered and controlled onboarding of pension schemes to pensions dashboards is necessary to manage capacity issues in industry and most schemes are aiming to connect in line with the timeline. We are working closely with the Pensions Dashboards Programme as they onboard connection providers, looking to anticipate bottlenecks and minimise any deviation from the timeline.
“We will be pragmatic in our approach to non-compliance and consider actions on a case-by-case basis. Trustees and scheme managers should engage early with their third party providers and keep audit trails of how they prepared to comply with dashboards duties.”
