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Pensions: Advisory Services

Question for Department for Work and Pensions

UIN 39556, tabled on 24 April 2020

To ask the Secretary of State for Work and Pensions, what discussions she has had with the Financial Conduct Authority (FCA) on when the FCA plans to (a) publish and (b) implement regulations directing pension savers to Pension Wise when they choose to access their pension savings.

Answered on

4 May 2020

The Secretary of State has not personally had discussions with the FCA in relation to this matter, however senior officials at the FCA, DWP and MaPS are working closely together on this and will continue to do so.

Existing Financial Conduct Authority (FCA) rules require firms to signpost to their customers the availability of pensions guidance via Pensions Wise. These include, for example, rules requiring firms to issue wake-up packs, designed to be one of the main sources of information for consumers about their options for accessing their pension savings.

Furthermore, the Money and Pension Service (MaPS) has undertaken trials to gather evidence on the possible ways to help encourage more people to take Pension Wise guidance before accessing their pension, fulfilling the requirement upon Government and the FCA set out in the Financial Guidance and Claims Act 2018.

MaPS, with Behavioural Insights Team (BIT) will publish an evaluation report of the trials in Summer 2020. We will use the evidence provided from the trials to help inform and assess the impact of the trials and conduct a consultation prior to implementing any regulations. For the FCA this also includes a duty to consult on the proposed rules. The due processes that DWP must take to lay regulations and the FCA must take to make rules will be followed.