DP24/3: Pensions: Adapting our requirements for a changing market

Read DP24/3 (PDF)[1] 

Why we're issuing this Discussion Paper

The pensions market is changing, which raises important questions about how the pension system can best support consumers. A programme of policy change across Government and regulators is underway.

In this context, we want to stimulate a discussion on other areas of our regulatory framework that might need to evolve, to better support consumers. These areas are: 

• The regulatory framework that governs projections, tools and modellers
• Requirements for individual DC pension transfers and consolidation
• The regulatory framework for self-invested personal pensions

Who this is for  

• all firms that operate and provide pension products (both accumulation and decumulation)
• investment platform providers
• trustees of DC occupational pension schemes
• parties that promote or facilitate DC pensions transfers and consolidation trade bodies for
• regulated firms
• financial advisers
• investment consultants
• consumers
• groups representing consumers’ interests

Next steps

Online response form[2]

We are asking for comments on this Discussion Paper by 27 February 2025.

You can send them to us using the online form. Or in writing to: Pensions Policy, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.

Or by email to: [email protected].

We will consider the responses and decide whether there is a case for making changes to our rules and guidance. If so, we will then consult on any changes in the normal way. 

Background

There has been a shift from defined benefit (DB) pensions to defined contribution pensions (DC), placing greater responsibility on consumers to save enough for their retirement. 

The introduction of pension freedoms has increased the volume and complexity of choices for consumers about how to use their DC pension savings through retirement. 

In response to these market changes, a programme of policy change is currently under way. This includes:

• Phase 1 of the Government's pensions review. 
• Our consultation on the detail of a value for money framework, which aims to make sure that DC workplace pensions work harder for pensions savers. 
• Our first consultation under the Advice Guidance Boundary Review (AGBR)[3], proposing targeted support reforms in pensions.

This discussion paper complements this programme of change by stimulating a discussion on other areas of our framework where further changes might be needed to better support consumers in this changing market.

We are publishing our discussion paper at the same time as our consultation on targeted support in pensions, as part of the wider AGBR, given these two pieces are interlinked and complementary.