7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.
In this 7 Days
- FCA publishes update on ongoing advice guidance boundary review
- TPR publishes blog on improving industry diversity
- TPO publishes factsheet for members on complaints about incorrect pension information
On 3 August 2023, the FCA published an update on its joint review of the advice guidance boundary with HMT. The FCA and HMT have identified “key themes and insights” from the early phase of the review, which will inform the next phase. These include that the review will need to “focus on outcomes and design a regulatory system where commercially viable models of support can emerge”, recognising the need to broaden access to financial advice and to the right information to enable consumers to make decisions.
In the meantime, the FCA has published guidance to clarify the existing framework of the advice guidance boundary for FCA-authorised persons. For FCA-authorised persons, the relevant boundary is giving a personal recommendation, since generally an FCA-authorised firm “only gives investment advice if the advice amounts to a personal recommendation”. The clarification includes examples of where communications would not be classed as a personal recommendation, and examples of good practice which complies with the consumer duty.
On 1 August 2023, TPR published a blog encouraging all occupational scheme trustees to take its anonymous trustee diversity and inclusion survey. This is intended to help TPR effectively measure its progress in promoting high standards of diversity and inclusion. TPR expects to update its guidance on diversity and inclusion as its “evidence base develops”.
On 31 July 2023, TPO published a factsheet for members on what happens if they receive incorrect pension information, such as an incorrect benefit statement. The factsheet explains that, in most cases, members will only be entitled to be paid the correct pension benefits set out in the rules, even if that amount is lower than incorrect information provided. It sets out what members should do if they have a complaint about incorrect information and when TPO can investigate.