In its response to the latest FCA Discussion Paper, Pensions: Adapting our requirements for a changing market, Aegon has welcomed FCA openness to update its regulations in areas such as modellers and projections to reflect the changing market. Regarding protecting customers’ interests on consolidation, and concerns over certain bespoke SIPP practices, Aegon has suggested tighter supervision might be a more proportionate response than new regulation.
Steven Cameron, Pensions Director at Aegon, said:
Digital tools and modelling
“The digital age has led to huge improvements in engaging with customers using digital tools and modellers. We support enabling firms to allow individuals to engage with ‘what if’ options using a range of projection rates which can reflect risk / reward profiles of funds. However, these still need to ‘make sense’ as part of wider customer journeys, so some consistency with projection rates in ‘disclosure’ material will be needed.”
Consolidation and transfers
“We’re pleased the FCA has seen improvements in transfer times where Origo is used. Further encouragement to use electronic processes would be welcome. We believe further improvements would be delivered if the DWP’s Conditions for Transfers regulations were reviewed. We hope DWP will consult here soon to remove any unnecessary ‘due diligence’ steps and speed up ‘safe’ transfers.”
SIPPs
“The SIPP label is now used to describe a very wide range of propositions. The issues the FCA identifies are largely historic and relate to a small subset of bespoke SIPPs. Again, the most effective way of addressing remaining concerns is through tighter supervision. It would be disproportionate to apply new regulations across all schemes currently called SIPPs when issues relate only to a small subset.”
