FCA consultation on new value for money framework
FCA consultation on new value for money framework
02 Sep 2024
What you need to know
- The Financial Conduct Authority (FCA) is consulting on proposed rules and guidance for a new value for money (VFM) framework.
- The proposals represent the culmination of several years’ work and a previous joint consultation by the FCA, The Pensions Regulator (TPR) and the Department for Work and Pensions (DWP) to implement a framework to assess and compare, and ultimately improve, the value delivered by all workplace defined contribution (DC) schemes.
- Whilst this consultation relates to rules for FCA-regulated firms operating contract-based pensions, the DWP intends to introduce corresponding legislation for DC trust-based schemes in the forthcoming Pension Schemes Bill.
- Once the framework is implemented, all in-scope schemes will be required to report against specific metrics and use this data to assess their scheme’s value against market comparators.
- The consultation runs until 17 October 2024, with trustees of trust-based schemes encouraged to respond. Responses will be considered jointly with the DWP and TPR to support a consistent approach across contract and trust-based schemes.