FCA sets out new rules for IGCs to assess value-for-money in workplace pension schemes

First VFM report by September 2022

clock • 2 min read

The Financial Conduct Authority has published a policy statement and introduced rules for setting up a more transparent value-for-money (VFM) assessment framework across the workplace pensions market.

To ensure pensions recipients receive the best possible offer in terms of VFM, the authority surveyed people within the industry, employing their feedback on its proposals.  The introduction of the new measures is intended for the independent governance committees (IGCs) to provide an informed challenge to providers to address poor VFM, while promoting some competitiveness among VFM providers. The regulator and industry sector agreed that 'costs and charges should not be assessed in isolation', the FCA said. IGCs should promptly act when a provider has higher costs and charges are n...

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