Today, the Pensions Regulator (TPR) published further consultations relating to its DC Principles and Features.
As part of this work it looked to see how the principles align with FSA regulation including TCF and we are pleased to see it has concluded there is significant alignment.
Kate Smith, Aegon's Regulatory Strategy Manager, said: "We're extremely pleased to see TPR acknowledging the many ways in which pension schemes run by FSA supervised firms already deliver on the TPR's Six DC Principles and the many of the 36 features which underpin these.
"Some commentators often overlook, or simply aren't aware of, the many positive governance arrangements and scheme design features offered by providers of GPPs and wrongly jump to the conclusion that ‘trust-based is inherently best'.
"Contract-based schemes, no matter what their size, benefit from the advantages of scale offered by GPP providers. These can include choice of a number of carefully constructed default funds, comprehensive member communications and on-line tools. FSA regulation sets minimum standards, but to remain competitive, GPP providers must innovate and go beyond these minima. All this helps improve member outcomes - TPR's objective.
"TPR is today acknowledging the many safeguards inherent within workplace pensions offered by FSA regulated firms. Relevant FSA regulations include Treating Customers Fairly principles, capital requirements, systems and controls and the approved persons regime. Of course this isn't just contract-based GPPs, but also insured trust-based scheme offered by FSA regulated firms."
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