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

TPR updates DC communications guidance for Stronger Nudge
FCA strengthens consumer protection by speeding up removal of firms that do not use their regulatory permission
GAD update on retirement calculator
Pension Scam Predictor Tool launched

TPR updates DC communications guidance for Stronger Nudge

New stronger nudge requirements come into force on 1 June 2022 (see our Alert). On 18 May 2022, TPR updated its communicating and reporting guidance for DC schemes to include a link to the Pension Wise booking tool. This update follows various changes made to the guidance in March 2022 to reflect the stronger nudge requirements (see 7 Days for an overview of those changes).

FCA strengthens consumer protection by speeding up removal of firms that do not use their regulatory permission

The FCA announced on 19 May 2022 it is to use new powers to more swiftly cancel or change what regulated activities firms are permitted to carry out, known as “permissions”. This new “use it or lose it” power is available following a change in the law allowing the FCA to streamline and shorten the removals process. The FCA will provide a firm with two warnings if it believes it is not using its regulatory permission. The FCA will then be able to cancel the permission, or change it, 28 days after the first warning if the firm has not taken appropriate action.

The aim is to strengthen consumer protection by reducing the risk of misunderstandings and consumers being misled about their exposure to financial risk and how much protection is available.

GAD update on retirement calculator

On 18 May 2022, GAD published a case study on the development of its retirement calculator which provides benefit options information to public service pension scheme members following the McCloud ruling (see 7 Days). GAD aims to roll out the calculator to several public sector schemes in the coming financial year.

Pension Scam Predictor Tool launched

Help & Advice has launched an assessment tool to help protect members against pension scams. The tool asks around 20 questions about the user’s pension transfer and gives a score as to the likelihood of the transfer being a scam. While members may find this tool useful, it provides a guide only and should not replace schemes’ or members’ due diligence on pension transfers, nor a member being directed to seek appropriate guidance where required.