Steven Cameron, Pensions Director at Aegon said: “The HM Treasury Call for Evidence as it develops its Strategy for Financial Services Growth and Competitiveness will have wide reaching implications for the next 10 years and beyond with different impacts across distinct parts of the UK financial services industry.
Sequencing
“One key principle we’re urging Government to follow is careful and logical sequencing of the many proposed strategic changes affecting the financial services industry and its customers. “Looking just at workplace pensions, these include a value for money framework, hugely ambitious drivers for scheme consolidation, dealing with small pots, pension dashboards, trustee retirement products and the extension of collective defined contribution schemes.
“We believe these need to be prioritised based on which will have greatest beneficial impact for consumers and also on UK economic growth. We also need a logical sequence, rather than an ‘all at once’ approach. Otherwise, consumers will be confused, and our industry’s productivity could be damaged through inefficient use of resources, acting against the objectives of growth and competitiveness.
Regulatory aims
“There’s also a need for a transparent and agreed balance of regulatory objectives. We support the Government’s desire for the regulators, and the FCA specifically, to support growth, innovation and measured risk-taking. We have concerns that the recent report by the APPG shows some stakeholders would prefer the regulators to take an ever more risk-averse approach to consumer protection which we don’t believe is needed.
Advice Guidance Boundary Review
“We’ve also taken the opportunity to highlight the significant benefits we see in the Advice Guidance Boundary Review and Targeted Support in particular. This potentially game-changing new approach could support millions of customers - who simply won’t access advice - to make better financial decisions, benefitting both them and the wider UK economy.”
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