The Pension Schemes Bill has passed into law, having made its way through parliament and received Royal Assent in February 2021. It creates a legislative framework for pensions dashboards, paving the way for secondary legislation, which will make it mandatory for pension providers and schemes to connect to pension dashboards, so that users can see their pension information securely online, in one place.
The legislation provides the Secretary of State for Work and pensions with a range of powers, such as setting qualifying standards for dashboard services and compulsion for pension providers and schemes to provide adequate data within a specified timeframe.
The government has committed to make the provision of pensions dashboards a Financial Conduct Authority (FCA) regulated activity, through amendments that HM Treasury will make to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. Organisations wishing to become pensions dashboard providers will have to apply for FCA authorisation and adhere to FCA conduct rules.
The role of regulators
The legislation sets out significant roles for The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA). They will regulate the compliance of pension providers and schemes in providing data to individuals via their chosen dashboard.
- TPR will regulate trust-based and public sector pension schemes.
- FCA will regulate personal and stakeholder pension schemes.
We will work closely with DWP and both regulators to ensure that pension schemes and others are clear about what is expected of them. Guidance and information will be provided on the new legal duties and the standards that must be met.