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
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.
Paragraph Reference:
105
Government Response
Accepted
HM Government
Accepted
DWP plan to lay the draft Occupational Pension Scheme (Funding and Investment Strategy and Amendment) Regulations 2023 before Parliament in due course and it will address this matter. A full impact assessment will accompany the draft Regulations. The Impact Assessment will consider the interactions of the Regulations with the wider macroeconomic environment. These issues will be monitored closely by the Secretary of State for the Department for Work and Pensions and through regular assessment of the data collected by the Office for National Statistics, the PPF and TPR, and DWP will publish a report at least every 5 years.