The FCA and The Pensions Regulator are seeking feedback on areas they should act on jointly to tackle risks to the pensions sector, in a joint call for input published today.
In February, the two regulators said they were working on a pensions regulatory strategy to set out how they will work together to tackle risks to the pensions sector in the next five to 10 years.
Through the call for input the regulators want to know what the biggest current and potential risks are in the sector, and how they should tackle them.
The document says the biggest potential harm in the sector is the prospect of savers not having adequate income, or the level of income they expected, in retirement.
The regulators say this issue is also affected by several factors they cannot tackle alone, for example, the level of consumer confidence in pensions, the level of real interest rates and levels of retirement saving.
The regulators say that to develop their strategic approach they have identified the following ares where they could work jointly:
- Getting saving off to a good start: access to pensions
- Making sure pensions are well run and funded: effective governance and secure funding
- Making sure pension savings are safe
- Making sure pensions offer good value for money
- Supporting good choices and outcomes for consumers and members.
The call for input says: “We have been working jointly on our pensions strategies, which aim to clarify how we work together generally. We also outline how we will work over the next five to 10 years to tackle the risks we see facing the pensions industry.”
It says: “Our strategies need to recognise that there are a number of factors that fall outside of our respective remits. We must be alert to these factors as they can create risks, and affect how much money people have to live on in retirement, for example, the macro-economic environment and other factors affecting investment performance. Where possible, we will identify where we can work with others to mitigate these risks.”
The Government also working to introduce legislation that will safeguard company pensions and is set to announce a new criminal offence of neglecting pension responsibilities this week.