Pensions - Articles - Extended deadlines for Consumer Duty implementation welcomed


Extended deadlines reflect ‘major shift’ ambitions but remain challenging. Extra year for closed legacy books will allow prioritised improvements across customer groups. Scope extended to beneficiaries of trust-based schemes supported by FCA regulated firms. Additional 48 pages of guidance including on distribution chain responsibilities with further sector specific guidance promised. Collaboration across the distribution chain remains key

 The FCA have published its Policy Statement and final rules on the New Consumer Duty, after a second consultation closed back in February.

 Steven Cameron, Pensions Director at Aegon said: “We fully support the FCA’s new Consumer Duty and its ambition to ‘level up’ all parts of the retail financial services industry, delivering good outcomes and putting customer needs first. This will involve a fundamental industry-wide review to make sure products and services meet customer needs and offer fair value, testing customers can understand all forms of communication and examining whether customer support is truly meeting needs.

 “Carrying out such an all-encompassing review thoroughly will take time. We’re pleased the FCA has listened to requests for an extended and prioritised timeline. Deferring the deadline for ‘open’ products and services, albeit by only three months till July 2023, is welcome but timelines remain tight. The extra year to implement changes for legacy books closed to new business is also helpful, particularly for firms with policies many decades old, with policy conditions written for a very different world. It’s in everyone’s interests, including consumers, that priority improvements are delivered first.

 “Many firms, including Aegon, have already undertaken a gap analysis against the draft FCA rules, and will now revisit this to reflect these final rules and guidance. One significant change is the FCA has amended the definition of retail customer to include beneficiaries of trust based pension schemes, where an FCA authorised firm provides services to a trustee.

 “We had called for additional guidance in many areas and the final version of the guidance has increased from 72 to 120 pages, with further sector specific guidance promised. There is more guidance on the respective responsibilities across what are often complex distribution chains involving fund managers, platforms, product manufacturers and advisers. To deliver on the new Duty, every firm will need to understand changes in approaches of those before and after them in the distribution chain. This will be one of the greatest challenges ahead and close collaboration will be key. We hope through an iterative process that industry standard approaches will emerge in areas such as data exchange and presentation of ‘value assessments’.”
  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.