The Financial Conduct Authority and The Pensions Regulator have today published a guide that sets out how they will regulate defined contribution workplace pensions.

The new guide outlines similarities between TPR and the FCA, and explains how both regulators work to ensure that member outcomes are not adversely affected by the differences in regulatory regime.

“Given that the FCA regulates firms that provide contract-based pension schemes and The Pensions Regulator’s remit is more about the schemes themselves, the regulators will take the lead on different kinds of activity, consistent with their respective regulatory remit, strategy and powers,” the guide says.

“The Pensions Regulator is more likely to take the lead where there are problems with an individual scheme and the FCA is more likely to take the lead where the issue is caused by the pension provider. If there are potential implications for both regulators, they will agree who should take the lead and may undertake a joint investigation if appropriate.”

The guide is aimed at trustees, pension providers, and advisers. It outlines each regulator’s approach and how they work together to ensure consistency.

TPR executive director for DC, governance and administration Andrew Warwick-Thompson said retirement savers have a right to expect that their workplace pension scheme is “well-run and will deliver a good outcome.”

“Joined-up regulation is essential to build equal confidence in both types of scheme, and this guide clarifies the various ways in which we and the FCA work together to improve the quality of all DC schemes.”

FCA director of policy, risk and research Christopher Woolard added: “While both organisations already work together closely, as the new landscape takes shape it is more important than ever that there is a consistent approach between the two regulators. The guide sets out how each of us will work to achieve that.”

The Department for Work and Pensions are working towards launching a series of quality standards for DC schemes. These will set minimum requirements for governance, investment fund design and administration and will offer a good level of protection for members.

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