Tom Selby: FCA right to focus on costs and charges in value-for-money push

Rules from September 2022

clock • 4 min read

There was more than a little, ‘you don't say, Mr Holmes' about the Financial Conduct Authority's (FCA's) latest missive on delivering value-for-money in the defined contribution (DC) pensions market, writes Tom Selbey, who takes a look at the new rules for IGCs...

The regulator is keen to ensure independent governance committees (IGCs) and governance advisory arrangements (GAAs) - two of the more recent additions to financial services acronym bingo - adequately assess whether workplace pensions and the recently-introduced investment pathways are delivering value for investors. Specifically, from September 2022 IGCs and GAAs will need to: Take into account three key elements of value-for-money: costs and charges; investment performance; and services provided (including member communications) Assess and report on value-for-money, particularly...

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