Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Accepted
Paragraph: 105
Bring forward plans to bring investment consultants within the FCA regulatory perimeter.
Recommendation
We heard, including from the FCA itself, that in some cases investment consultants were giving standardised advice, rather than thinking through what was best for the individual pension fund. Given the complexity of the decisions trustees are required to make, this is a concern. The Government should bring forward plans for investment consultants to be brought within the FCA’s regulatory perimeter before the end of this Parliament.
Government response summary AI-generated
The government plans for DWP to lay draft Occupational Pension Scheme Regulations 2023, accompanied by an impact assessment, which will address the matter of investment consultants and be monitored regularly.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
105
Government Response
Accepted
HM Government · verbatim extract
Accepted
The Government welcomes the Committee’s recommendation that investment consultants are brought within the FCA’s regulatory perimeter. The DWP and HMT call for evidence on Pension trustee skills, capability and culture considers the role of advice and includes that of investment consultants. The aim is to improve DWP and HMT’s understanding of these areas and inform future policy. The Government will take the Committee’s views into account – alongside the perspectives of the Competition and Markets Authority, the FCA, and the FPC – as it assesses its next steps. 3 https://www.gov.uk/government/consultations/defined-benefit-pension-scheme-consolidation/outcome/ government-response-consolidation-of-defined-benefit-pension-schemes 4 Supporting innovation in DB superfunds to drive better saver outcomes (thepensionsregulator.gov.uk) 5 Pension trustee skills, capability and culture: a call for evidence - GOV.UK (www.gov.uk) Defined benefit pensions with Liability Driven Investments: Government Response to Committee’s Seventh Report of Session 2022-23 7
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