The Pensions Regulator and the Financial Conduct Authority are set to develop a pensions regulatory strategy, which will outline how the two bodies work together, it has been announced.
The FCA and TPR are to create a framework on how they will work to tackle the key risk facing the pensions sector in the next five to 10 years.
In order to develop this, the regulators are to hold a number of events with stakeholders in London, Edinburgh and Manchester this spring.
The stakeholder events will focus on two key areas being, the collective view of the current landscape of the sector and TPR and the FCA’s regulatory remits, and likely key areas of focus in the coming years that will involve the two regulators.
In addition to these meetings, the FCA and TPR are to hold a webinar to obtain further feedback.
The process will also be informed by the FCA’s research and TPR’s TPR Future program as well as the Work and Pensions Select Committee’s inquiry into the freedom and choice reform and the Department for Work and Pensions’ auto-enrolment review.
“As part of our ongoing efforts to ensure the sector works well for consumers and workplace pension savers, we are working together on a pensions strategy, which will look at how we will work together, and with stakeholders, in the coming years,” the two regulators noted.
Commenting on the regulators’ plans, Barnet Waddingham senior consultant Malcolm McLean said: “The fact that the two regulators are proposing to look at how they can work better together to tackle key risks facing the pensions sector in the next five to 10 years is very welcome.
“There have been many significant changes in the pensions industry in recent years which have generally been handled well, but it may require a more coordinated and holistic approach from the FCA and TPR in future.
“There are clear areas of overlap and duplication between the two bodies that can sometimes create delays and a degree of confusion and uncertainty for stakeholders. It is important that, wherever possible, these sorts of problems are eliminated or at least minimised, going forward.”
Nonetheless, McLean also questioned whether the regulatory process could be better addressed with a single regulator. “There may be practical difficulties of scale which preclude this happening but on the surface, a super regulator combining all the functions under one roof has much to commend it.”