The guide details areas of common ground, and explains how both regulators seek to ensure that member outcomes are not adversely affected by the differences in regulatory regime.
TPR executive director for DC, governance and administration Andrew Warwick-Thompson says: “Retirement savers have a right to expect that their workplace pension scheme, whether it is trust- or contract-based, is well-run and will deliver a good outcome. I can see no reason in principle why trust- or contract-based schemes should deliver different outcomes. However, joined-up regulation is essential to build equal confidence in both types of scheme, and this guide clarifies the various ways in which we and the FCA work together to improve the quality of all DC schemes.”
FCA director of policy, risk and research Christopher Woolard says: “The introduction of automatic enrolment has meant that more people than ever are being enrolled into DC schemes and many employers will not have had to consider these issues before. While both organisations already work together closely, as the new landscape takes shape it is more important than ever that there is a consistent approach between the two regulators. The guide sets out how each of us will work to achieve that.”
Barnett Waddingham partner Mark Futcher says: “This guide is a welcome development for the DC industry. Good governance is the key for any successful DC arrangement and ultimately leads to the best outcome for members.
“Underlying all DC schemes are the same fundamental issues and sponsoring employers should ensure that they are getting their employees the best outcome for their spend. Whether there is a legal duty or not, this is good business practice.
“We have seen pressure on contract based pension providers to increase the governance and oversight surrounding their platforms and I think we will soon see a formal duty placed on the employer to ensure that their automatic enrolment scheme complies with a minimum standard”