Pensions - Articles - PTL responds to new FCA rules on IGCs

 Richard Butcher, Managing Director of PTL, said:

 “We welcome the finalised codes of business that have been issued today by the FCA – on the whole they are balanced and take into account the points raised during consultation. We believe they will be effective in supporting the goal of IGCs, which is improve the governance of workplace pensions and so member outcomes.

  

 “However, there are two areas in which we would like to see further consideration. The first is that today’s rules state that if an insurer cannot identify deferred members, they will be required to extend the IGCs jurisdiction across individual personal pensions. This requirement will bring with it additional significant costs for insurers as well as market risk. Secondly, although the new rules call for consideration of value for money in workplace pensions, there is currently no definition of what value for money is. We would like to see the industry come together to define and agree a common definition to avoid any future subjectivity, which would ultimately not be to the benefit of pension scheme members.”