Proposed rules for non workplace pensions
What has happened?
In December 2022, the FCA set out in its Policy Statement PS 22/15 the final rules intended to improve outcomes for consumers saving into non-workplace pensions. The rules will apply to firms that operate non-workplace pensions, including:
• life insurers,
• platform providers, and
• self-invested personal pension operators
What are the key points?
The FCA is making these rules to ensure that non-workplace pension providers:
- Offer a default option to non-advised consumers buying a non-workplace pension (NWP). This will be a ready-made, standardised investment solution (a ‘default option’), and providers will make it available alongside other investments; firms will have flexibility in naming the default option. This default option requirement will not apply to legacy products.
- Issue a ‘cash warning’ to consumers holding significant and sustained levels of cash (exceeding 25% of NWP assets) in their NWP. to warn them that their pension savings are at risk of being eroded by inflation.
Firms affected by these changes will need to ensure they comply with the rules by 1 December 2023.
How can we help you?
Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, its team of specialists can serve as your right hand in meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your non-workplace pension business, or related services? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or send an email to info@thistleinitiatives.co.uk.