The Financial Conduct Authority (FCA) has said it "suspects" de-facto default funds are operating in the non-workplace pension market where consumers have less protections than the workplace market.
In its consultation paper on the non-workplace pension market, the FCA said default funds, which are popular in workplace schemes, were subject to regulations and protections for consumers that default funds in non-workplace pensions are not. In workplace schemes, members invested in default funds do not need to review their funds due to the regulations involved. Providers must comply with charge caps and the Independent Governance Committee challenges them on value for money. The regulator, however, said its rules regarding default funds in auto-enrolled workplace schemes recognised ...
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