ON THIS PAGE
- TRP asks trustees to help shape VFM framework
Welcome to your weekly update from the A&O Shearman Pensions team, covering all the latest legal and regulatory developments in the world of workplace pensions.
TRP asks trustees to help shape VFM framework
We reported previously on the Financial Conduct Authority’s consultation on a value for money framework for savers in DC default arrangements. The consultation relates to FCA-regulated arrangements, but the government intends to legislate to apply equivalent measures to trust-based schemes and TPR encourages trustees to engage with the consultation.
By way of reminder, the proposed framework has four key aspects:
- consistent measurement and public disclosure of investment performance, costs, and service quality against specified metrics;
- assessment of performance against other arrangements on a consistent and objective basis;
- disclosure of assessment outcomes; and
- action for under-performing
TPR has now published a blog post underlining that this is an opportunity for trust-based schemes to shape the new framework. TPR asks schemes to help to identify any changes required, to inform the legislative regime that will follow in the Pension Schemes Bill. In particular, TPR is seeking views on how best to measure quality of service – for example, what metrics would clearly demonstrate better outcomes for savers.
Read TPR’s blog post
Read the consultation paper
[View source.]
