Pensions - Articles - Ralph Tucker on FSA's pension provider legacy system warning

 “The FSAs concerns over pension provider’s ‘inflexible’ legacy systems hampering reform are well placed. Put simply any change can be an expensive exercise for the majority of providers due to outdated legacy systems let alone the huge multiple levels of complex change expected for 2012. Solutions need to be accurate, targeted and risk adverse to even begin to gain traction with product providers thus innovation and response times to changing market needs are hampered.

 The unfortunate effect of this could lead to a decision by many providers to just comply with the minimum amount possible. Such an attitude is not so much comply or die but rather just comply and die. The fact is that legacy systems cause many organisations to be hamstrung and are detrimental to growth and providers should look at doing what they can to overcome these negative effects.”