Establishing a common basis for value

The Financial Conduct Authority (FCA) is consulting on detailed rules and guidance for a new Value for Money Framework for defined contribution (DC) pension schemes.² Although the FCA Framework would apply directly only to the default investment arrangements of contract-based schemes, occupational DC trustees are also being encouraged to respond to the proposals.

Regulator rues minimal-effort ESG disclosures

The Pensions Regulator published a Market Oversight: ESG report, which is about trustee compliance with environmental, social and governance (ESG) obligations. The Regulator notes that general compliance levels were extremely high, but is disappointed that many trustees are doing the minimum to comply with the requirements for statements of investment principles (SIPs) and implementation statements (ISs). In particular, there was a lack of evidence of oversight by trustees who delegate day-to-day responsibility to investment managers.

Fun to stay at the N-M-P-A

The Pensions Administration Standards Association (PASA) has published guidance on Preparing for the Change to Normal Minimum Pension Age (NMPA). It encourages scheme trustees and administrators to begin preparations for the increase in NMPA, from 55 to 57, that’s scheduled to occur on 6 April 2028.

HMRC newsletters: August 2024

Pension Schemes Newsletter 161, from His Majesty’s Revenue and Customs (HMRC), confirms the Government's intention to introduce fixes for the problems in the lifetime-allowance-abolition legislation 'as soon as the parliamentary timetable permits after the summer recess' (Parliament is scheduled to resume sitting on 1 September 2024). There was an ‘informal technical consultation’ on two sets of draft Regulations in late July and early August.

If you’d like to discuss anything we’ve covered, or have any questions, please get in touch.

¹ See ‘Early news on promised review’, in Current Issues August 2024.

² CP24/16: The Value for Money Framework

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.