Following its consultation on the Budget 2014 pension reforms,
HM Treasury has now set out its response on various aspects,
particularly the guaranteed guidance. Additionally, the Financial
Conduct Authority (FCA) has published a consultation going into
more detail on implementation.
- Provision of guaranteed guidance will be limited to
organisations reviewed by HM Treasury as being independent, with no
"actual or potential conflict of interest". This includes the Money
Advice Service (MAS) and the Pensions Advisory Service (TPAS) as
well as other "trusted, consumer-facing organisations" including
Citizens Advice and Age UK.
- The FCA will establish a new separate oversight regime to set
and maintain standards and monitor compliance, and the Treasury
will enact legislation to provide the FCA with the duties and
powers to do this.
- The FCA has started in this role by publishing a consultation
on the guaranteed guidance delivery, setting out the high-level
standards, as well as signposting duties for pension providers and
the funding process.
- The standards themselves are very close to what the CII
proposed in its consultation response, including a section on
- The FCA consultation closes on 22 September, after which it
will set out the final standards and rules in late autumn. The
near-final rules concerning the levy are expected in the FCA's
annual consultation in October.
- Meanwhile the Treasury and Department for Work and Pensions
(DWP) will be taking forward two pieces of legislation: the
Pensions Schemes Bill and the Pensions Tax Bill, which will
implement the reforms. The DWP will also be publishing a progress
update in Autumn 2014.
View the attached document »
HM Treasury consultation: freedom & choice in pensions
Chancellor's pensions reforms »