7 days

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

• DWP consults on extending CDC regime to unconnected employers
• New tax regulations published
• FCA updates on the advice guidance boundary review
• PASA releases “dashboards toolkit” for AVCs
• TPO publishes new factsheets
• In Sackers news

DWP consults on extending CDC regime to unconnected employers

On 8 October 2024, building on “significant appetite from industry”, the DWP published a consultation on extending the CDC framework. The Government hopes that this could “modernise” the pensions market, “deliver better outcomes” for members, and “allow for larger investment in the UK”.

The consultation follows on from the DWP’s 2023 consultation and includes draft regulations to enable unconnected multi-employer “whole life” CDC schemes, including master trusts. Separately, the DWP is continuing to explore what would be needed to provide trust-based decumulation-only CDC options.

The DWP plans to lay the regulations in 2025 and, subject to parliamentary approval, bring that legislation and an updated TPR Code into force “as soon as practicable after that”. Unconnected multi-employer CDC schemes would then be able to apply to TPR for authorisation to operate.

The consultation closes on 19 November 2024.

New tax regulations published

Following HMRC’s informal consultation over the summer, two sets of tax regulations have been published: the Pensions (Abolition of LTA Charge etc) No. 2 Regulations 2024 and the draft Pensions (Abolition of LTA Charge etc) No. 3 Regulations 2024. The regulations are intended to address certain issues identified in pensions tax legislation following the removal of the LTA from 6 April 2024 (see our Alert for further details).

Both sets of regulations are drafted to come into force on 18 November 2024, but with effect from 6 April 2024.

FCA updates on the advice guidance boundary review

The FCA has given updates on the progress of the joint FCA and HMT advice guidance boundary review:

• in a speech on its new supervisory strategy for the financial advice sector, Nick Hulme (head of department, advisers, wealth and pensions, consumer investments) commented that a further consultation focused on pensions is expected “next year”. In the meantime, financial advice firms are encouraged to take steps to reduce the advice gap before the outcome of the review is published, and
• in a “Dear CEO” letter for financial advisers and investment intermediaries published on 7 October 2024, the FCA announced it plans to publish further commentary on the retirement income advice market in Q1 2025.

PASA releases “dashboards toolkit” for AVCs

On 14 October 2024, PASA published a pensions dashboards toolkit containing “practical help” for trustees and providers on AVCs. The content includes:

• a checklist of activities to consider when connecting using a “single source” approach (ie where a single party will connect both main scheme benefits and AVCs to the dashboards ecosystem)
• questions for trustees to ask AVC providers, where the provider is connecting directly to the dashboards ecosystem, and
• a list detailing PASA’s current understanding of connection methods supported by each AVC provider (although schemes should confirm the position with their providers).

PASA expects add to the toolkit and to update the list of AVC providers regularly.

TPO publishes new factsheets

TPO published guidance aimed at complainants in several new factsheets on 11 October 2024. The guidance reflects changes implemented by TPO as part of its operating model review, intended to tackle the historical caseload and reduce queue lengths.

New factsheets on “Who we are and what we do” and “Complaining to the party/parties at fault” explain to members that they must have first tried to resolve matters with the party or parties they think are at fault before TPO will accept their complaint.

A new factsheet on TPO’s new expedited decision-making process through “The Resolution Team” explains what it is, how it operates and the options available to the parties.

In Sackers news

We are looking forward to seeing everyone at the PLSA Conference in Liverpool this week. Come and meet Philippa Connaughton, Vicky Carr, Jacqui Reid, Oliver Topping, Hugh Gittins and Georgina Stewart at stand A7 in the exhibition hall. Join Philippa on Wednesday 16 October for her fireside chat at 4.05pm by pre-booking your seat in the PLSA app, pick up our latest Know-how, drop by for breakfast and collect our Sackers bag from our stand for a chance to make a last minute entry in our #sackersbag competition.