annual retirement conference slides permissions

ANNUAL RETIREMENT CONFERENCETackling the challenges of long-term saving

Principal Partner

Kindly hosted by

Opening remarks from the Conference ChairRenny Biggins, Retirement Policy Manager, TISA

Opening keynoteGuy Opperman MP, Minister for Pensions and Financial Inclusion, DWP

Getting retirement right – Plan, prepare, enjoyCharles McCready, Strategic Policy Director, TISA

www.tisa.uk.com 5

Launch of new report – Getting Retirement Right

3 Key Objectives

• Create a report that brings together the key challenges facing our society in trying to save for a comfortable retirement

• Tests the current AE model against likely consumer life time journeys

• Make 5 recommendations on how to improve the current system

www.tisa.uk.com 6

Industry support

www.tisa.uk.com 7

Low levels of engagement with pensions

• 36.2 million people aged between 16 and 64 (2011 Consensus)

• 19 million employed in private sector

• Two thirds not in a pension, plus the majority of self employed (4m)

www.tisa.uk.com 8

Switch to Defined Contribution

• DC pensions start taking over in 1990s

• By 2018, employer contribution levels dropped from an average of 25% of salary into DB to just 2.4% in a DC scheme (now increased by employer contributions moving to 3%)

• 1 million employees contributing to DB (2018)

• Over 10 million contribution to DC (2018)

• Tipping point in 2035 when DC pensions form bulk of retirement income

www.tisa.uk.com 9

Models

• Looking at generation entering AE in 2025, first to have this scheme for whole of lifetime

• Look at households as majority of people are couples in retirement and takes into consideration their different career and savings experiences

• Used PLSA’s Retirement Living Standards, moderate income for a household - £29,000 pa

• Assumed both partners receive full state pension - £17,500

• Private pension needs to cover £11,500

• Assumes house is paid for

• There are many different life journeys that people will experience and have sought to layer in some of the more common likely outcomes

• 8% contributions will provide private pension household income from SPA to 91

www.tisa.uk.com 10

Buying a home

• House prices have increased 173% in past 20 years versus wage increase of 19% for those aged 25 to 34

• Home ownership for this group is low than previous cohorts

• Equity in the home provides a safety net in retirement, especially for health care costs

• Opting in/out of AE to buy finely balanced in value of combined pension and property

• But opt outs will exhaust pension pot by 85 versus 91 for opt ins (8% contribution)

• Renters come out as very vulnerable

• Will exhaust pot at 80, increased to 86 with 12% contribution level

www.tisa.uk.com 11

Longer in poor health

• Life expectancy has increased dramatically in last 90 years rising from just over 60 years to over 90 years (average between men and women)

• Longevity is now plateauing

• Good health not kept pace with longevity with longer periods spent in poor health

• Costs average of £1,350 per year where poor health is experienced

• Not including long term care

• Reduce life of pot to 87 for home buyers that opt in and 83 for those that opt out

• 10% to 14% contribution rates required

www.tisa.uk.com 12

Scenarios

• Models covered a range of scenarios to understand impact of contribution levels and ability to provide private pension pot for life expectancy, including:-

• Residential / home care – would require significant additional saving

• Early retirement – exhausts private pot very quickly, especially ahead of SPA

• Self-employed – requires high level of engagement with pension saving

• Increasing salary – much higher level of lifetime contributions

• Tax free lump sum – requires an additional 2% to 3% of contributions to provide the full 25% once other living expenses taken into account

www.tisa.uk.com 13

Conclusions

• 8% contribution levels provide the desired level of income for life in relatively few scenarios and does include home owners that remained opted when saving a deposit

• 10% provides needed boost to home buyers that opted out and/or covers ling term care costs (not residential or home care)

• 12% provides greater assurance and incorporates an element of tax free lump sum (depending on market conditions)

• Renters that want to continue renting privately need to save about 80% more than home buyer to cover rent in retirement

• No solution proposed for residential or home care but equity in the home available for some

• Not covered the how as next stage of work

www.tisa.uk.com 14

Recommendations

www.tisa.uk.com 15

Recommendations

Auto-Enrolment / Pension Scheme

www.tisa.uk.com 16

Recommendations

TISADakota House, 25 Falcon Court

Preston Farm Business ParkSTOCKTON-ON-TEES

TS18 3TX

THANK YOU

www.tisa.uk.com01642 666999

[email protected]

The Default Fund Conundrum

JOHN GREENWOODEDITOR & PUBLISHER, CORPORATE ADVISER

Defaults: thoughts and

preconceptions

• DB to DC switch is huge

• Defaults – not that bad. Actually rather good?

• Not all defaults are born equal

• Engagement will be key, and performance will play a role

• Good performance is more important than low charges

• Defaults will become behemoths – and pose a threat to retail

• Digital presents threats and opportunities

• Defaults could become personalised

• A mixed report card on ethical/ESG but things are changing fast

• Retirement is a long way from being sorted

A brief history of defaults:

• DC replacing DB in private sector

• Most people not advised

• 2012: Auto-enrolment

• 10 million new savers

• Emergence of master trusts

•2019: Master trust authorisation = consolidation

• One size fits all

•Two regulators

•Trustee boards/IGCs: scheme funders/providers

The established DC providersProvider by DC assets (as of 30 June unless otherwise stated)

Master trust defaultsMaster trust default members –by size

Default funds by assets

Master trust and GPP defaults by assets and number of employers

Expect behemoths - the Australian experience

• £1.4 trillion in DC assets Down Under

• From£78bn in 1992

• Projected to hit £1.8 - £2.6 trillion by 2025

• £3.1 - £3.65 trillion by 2030

• Population of 26 million - 9.5% contribution

• Biggest Aussie Super £89bn

UK default fund performance is mostly good

• Annualised return to 30.9.19, growth phase (30 years to SPA)

• CAPA 9.65% = 54% cumulative

• More than employer contribution or tax relief

• Top performer – SuperTrust UK, 13.5% = 84% cumulative

• Bottom performer – Now: Pensions, 4.54% = 25%

Different strategies generating different outcomes

(cum figures assume 0.5% charge)

Source www.capa-data.com

http://www.capa-data.com/

What will the public make of it?

Short term returns will not tell the whole story Growth phase default fund: risk/return, 12 months to 31.9.10

A range of different approaches to riskData to Q1 2019 – younger saver (30 years to SPA), 5 years annualised returns

•Source: www.capa-data.com


A wide range of landing points• Risk ranges from virtually non-existent to significant

Risk/return Saver 1 day to SPA 5-yr

•Source: www.capa-data.com


Equity content at State Pension AgeEquity content of defaults at state pension age (%)

Cash/government bond content at SPACash/ government bond content of defaults at state pension age (%)

Workplace challenging retail? • Workplace defaults outperforms financial adviser pension recommendations

Trust and alignment of interests – the Australian experience

• Royal Commission – Retail/for-profit criticised for poor regulatory oversight

• Profit-for-member v shareholder-owned

• Broader asset class

• Investment budget spend – illiquids?

• Performance

• Transfer of assets

ESG and defaults – a mixed report card

Do you plan to introduce ESG strategies over the next year? (%YOY)

• Master trusts and GPPs are shifting to ESG models

• But single-employer trusts are lagging – UKSIF found just 30% of trusts complying with new ESG rules

Any questions?

JOHN GREENWOODEDITOR & PUBLISHER, CORPORATE ADVISER

Investment pathways

Turning regulation into opportunity

Andrew Storey, Propositions Director

Introduces

investment pathways

for consumers entering

drawdown without advice

FCA PS19/21

When it comes into force

172 Days

Direct to consumer drawdown providers

Adviser-focused drawdown providers

Trust based pension schemes

Who is affected

Choosing appropriate funds

- Competitive advantage for investments

Explaining the choices and risk

- Improves the outcomes for customer

- Reduced risk of customer expectations not being met

Where are the opportunities?

Choosing appropriate funds

Pick a fund for each of the 4 objectives:

What do you need to do?

• Best fit across your customers

• Group your customers and present a different fund

• Allow customers to assess fit themselves

Does one size fit all?

Assess what’s happened in the past?

Or check potential to meet objectives in the future?

Being customer outcome focused

Turning regulation into opportunity

• Is it measurable?

• Are outcomes considered?

• Is it meaningful to the customer?

• Can it explain risk?

• Is it simple to understand?

• Is it realistic for income?

A useful checklist for appropriateness

Example age related check

• Outcome defined as likelihood of sustained income over life

• At a 3 out of 5 risk level ie a 70% chance

• Using income increasing at 3% pa

Explaining it all to your customers

COBS19 is prescriptive for the journey

1

2

3

How do you want to select your investments?

What is your objective?

Here’s information on your fund

Explain risk so that expectations can be set

How risky is

this fund?

3 Here’s information on your fund

What does this

mean for me?

What income

could I get?

How risky is this fund?

What does this mean for me?

How much could I receive?

What income could I get?

Increase levels of drawdown

Sources: FCA Data bulletin 2018 https://www.fca.org.uk/publication/data/data-bulletin-issue-14.pdf

EValue’s Pension Freedom Index https://blog.ev.uk/pensions-freedom-index-2019-drawdown-tops-the-list

https://www.fca.org.uk/publication/data/data-bulletin-issue-14.pdf

https://blog.ev.uk/pensions-freedom-index-2019-drawdown-tops-the-list

• Is this the right step towards

better guidance and financial

wellbeing?

Keeping the focus on the customer outcome

In summary

If you provide drawdown...

You need to do the right thing in 172 days from now

• Customer outcome focused

• Simple and meaningful

• Realistic for income

• Find your competitive advantage

You can check existing funds for appropriateness

• How risky is this fund?

• What does it mean for me?

• What income could I get?

• Opportunity is to guide customers to do the right thing

Explain risk

Thank you

Come and talk to us on our stand today

Don’t forget - 172 days to go!

Refreshments & networking 10.40 – 11.10

Charlotte JacksonHead of Pensions Operations & Customer Protection

11 February 2020

The Money and Pensions Service UK Strategy for Financial Wellbeing

Money and Pensions Service

AGENDA

1 Overview of the UK Strategy for Financial Wellbeing – launch and challenge groups

2 Future Focus: Pensions Operations, opportunities and challenges ahead

3 Working together


Introducing the Money & Pensions Service

Northern Ireland forum 81

Created by bringing together the three providers of financial guidance…

… our aim is to make financial wellbeing a national priority and to bring about changes which will affect millions of lives.

UK Strategy for Financial Wellbeing

2020—2030


Why we exist

The Money and Pensions Service is here to make significant improvements to financial wellbeing in the UK.

According to the OECD, the UK is well down the G20 rankings in terms of financial wellbeing.

We have been given a legal duty to coordinate a national strategy that addresses this vital issue.

UK Strategy for Financial Wellbeing 83

11.5m people have

less than £100 in savings

9m often borrow

to buy food or pay bills

22m do not know what they

need to plan for retirement

5.3m children do not

get a meaningful financial education

What is the UK Strategy for Financial Wellbeing?

Future Focus

Pensions and later life Challenges

Engagement – addressing the trade offs and delays caused by living for today

More choices = need for good decisions by people who are confident and able to make them

Impact of behavioural bias on pensions, mortality, later life and opportunities to nudge

Intuitive design of products

Creating a sense of ownership and trust


Targeted Interventions

In the future focus work strand we are particularly conscious that the challenges ahead are likely to be very different between the different generations and by gender.

We will look at how customers are fairing, their ability to save for retirement, at the touchpoints when they could, should and do engage and the role MaPS plays in improving outcomes in retirement.


Baby boomers

Retirement on the horizon

Greatest exposure to DB pensions

Financially resilientConfused about

pensions

Generation x

(Mid income)

Mix of DC savingsHousing wealth

Squeezed by caring responsibilities

Generation x

(Low income)

40m over indebted

Likely to be paying minimal

pension contributions and

have small pots

Squeezed by caring

responsibilities

Millennials

(Middle income)

Likely to be in AE mater trusts

paying minimal contributions

Least financially confident

Least wealthy have no savings

4/5 don’t know enough about

savings to make a suitable

choice

What is the process and timeline to deliver the National Goals?

The Activation Phase will focus on bringing together influential stakeholders in a wide range of organisations and sectors. These organisations will bring forward recommendations that will help build bold and ambitious delivery plans to achieve the National Goals outlined in the UK Strategy

The Momentum Phase will focus on the recommendations from the Challenge Groups to prepare delivery plans for each of the UK Strategic Goals and all nations.

This phase will also include a framework and measurement of Financial Wellbeing and a UK wide Financial Wellbeing summit to launch the delivery plans, Financial Wellbeing movement and a campaign to engage organisations outside the Challenge Group process

The two Delivery Phases will focus on driving forward the activities and initiatives set out in the delivery plans developed during the previous phases of work

Mobilisation and activation of the UK Strategy

Delivery of the 2030 UK Goals


public sector

private sector

voluntary sector

Collaborating across the UK

Activation If people in the UK are to enjoy better financial wellbeing, many different organisations need to work together towards the same goals.

We are now looking at the strategy’s priority areas in detail, creating specific delivery plans, and setting milestones for our ten-year journey towards better financial wellbeing.

We plan to finish the activation stage of the strategy by summer 2020.


Joining in We are now working with leaders in:

Across the UK

We are also looking at particular financial wellbeing issues facing women and people with mental health problems.

We are creating delivery plans for each of the four

nations

Activation phase

Launch to Summer 2020

Thank you

Any questions?

Panel discussion - Decumulation options

Nathan Long, Research Analyst, Pensions, Savings and Investments, Hargreaves LansdownDale Critchley, Policy Manager, Workplace Savings and Retirement, Aviva

William Burrows, Financial Adviser, Better RetirementSteven Cameron, Public Affairs Director, Aegon UK

Lunch & networking 12.55 – 13.55

Keynote presentation –What is next for successful regulation? David Fairs, Executive Director of Regulatory Policy, Analysis and Advice, The Pensions Regulator

Norton Rose Fulbright LLP

11 February 2020

DB to DC Transfers - What are the legal considerations for those involved in the transfer process?

- Could this be the next financial scandal?

Shane O’Reilly

Partner

Imogen Garner

Partner

Introduction

*FCA video “Our expectation of financial advisers when advising you on pension transfers” August 2019

TPR DB to DC transfers and conversions guidance 2019

96

• Pension transfers are big business

• Since Freedom & Choice in 2015

– £60bn in DB transfer activity

– £34bn in 2018/2019 alone

– 250% rise on 2017/2018

– 210,000 individual cases

• What can trustees do to:

– Protect members

– Protect themselves

– Ensure compliance with their legal obligations

Backdrop

Record

interest

levels

Since Freedom

& Choice

in 2015

Regulatory evolution

Increased threat of

scams

*source FoIA request from Royal London, 2019

97

Member entitlement to a DB transfer

• Statutory right under Part 4ZA of PSA 1993 (supplemented by Transfer Regulations)

• Where

– DB member has right to (uncrystallised) benefits

– accrual has ceased

– application to transfer is made more than one year before NRD

PSA provides a statutory right to a CETV

• Where CETV exceeds £30,000, must take appropriate independent advice

• Receiving scheme must be registered (or QROPS) and can be occupational, personal or

SIPP

• Where statutory timeframes and conditions are met, trustees must effect transfer

• Scheme rules may provide entitlements in wider situations

98

Advice requirement

• Where value of ‘safeguarded’ benefits over £30,000, s48(8) of Pension Schemes Act

2015 applies

– ‘appropriate independent advice’ is required

– Authorised independent adviser

– Relevant FSMA permissions as prescribed

• Regulation 7 of Pension Schemes Act 2015 (Transitional Provisions and Appropriate

Independent Advice) Regulations 2015 requires confirmation from adviser that:

– Advice specific to transaction

– Adviser has required authorisations and permissions

– Adviser reference numbers

– Member and scheme name

99

Statutory timeline

Source: TPR DB to DC transfers and conversions guidance, December 2019

100

• TPR clear that despite the legal framework, pensions industry should

do what it can to protect members

• Warnings in place since 2013

• Dedicated scam section on website

https://www.thepensionsregulator.gov.uk/pension-scams

• DB to DC transfers and conversions guidance – December 2019

• Trustees should ensure they have processes in place to implement

transfer requests in a timely manner

• Acknowledged that where statutory conditions met, Trustees cannot

prevent transfer BUT expected to carry out appropriate diligence

• Clear steer that NOT trustee’s role to second-guess member’s

decisions BUT need to be aware and make members aware of risks

• May take Trustee behaviours into account when exercising powers

Regulatory expectations

101

https://www.thepensionsregulator.gov.uk/pension-scams

– PASA Guidance: Defined Benefit Transfers: A Guide to Good Practice – July 2019

– PSIG’s Code of Practice ‘Combating Pension Scams’ - v2 issue June 2019

– TPR/FCA - joint ScamSmart campaign

What else can trustees do to protect members (and themselves)?

102

Practical steps for trustees and administrators

1. Robust transfer

processes

8. Alert member of identified

risks

7. Due diligence on

receiving scheme

2. Be aware of the issues.

Ensure familiar with

industry materials

5. Check scheme rules

6.FCA Authorisation checks (s 48

advice)

4. Check facts closely against

CETVrequirements

3.Make member aware of risks at time of transfer

(ScamSmartmaterials)

9. Check Scheme

discharge provisions

10. Consider IFA support?

103

Legal Entity

Date

Pensions: FCAinterventions since 2015

• Pension Freedoms were announced in 2015 by way of the Pension Schemes Act

– The new regime has allowed pension holders over the age of 55 to access their accrued pension

savings to invest them how they might choose.

– Previously, pension holders could access 25% of savings as a lump sum and use the rest to fund

lifelong income by way of an annuity.

– The Pensions Schemes Act allows pension holders to access the entire sum (albeit not entirely

tax free) and invest it how they wish

• The FCA has consulted heavily in this area (9 consultations/policy statements between 2016 and

2019)

• The FCA discovered that there was a high percentage of unsuitable advice – particularly in regards

to transferring out of a Defined Benefit pension and into a Defined Contribution pension

• The FCA is of the view that since the introduction of Pension Freedoms, too many customers are

transferring out of a pension when it is not in their best interest.

The Pension Story

105

Pension Type Pros Cons

Defined Benefit Guaranteed benefit at

payout

Can be less risky

Protection against longevity

and investment risk

Less choice

Can represent ‘lost’ earnings

Poor drawdown ability

Defined Contribution More choice of provider

Greater variety of assets to

invest in

Ability to react to market

more

Lower admin costs

Higher risk

Leaves consumers

vulnerable to scams

No guaranteed amount of

retirement earnings

Longevity and investment

risk

The Pension Choice – Defined Benefit vs Defined Contribution

106

Timeline of FCA action in the pension sector

April 2015Announcement of Pension

Freedoms

October 2015FCA publishes CP15/30 :

Pension reforms - proposed

changes to our rules and

guidance

April 2016PS16/12: Pension reforms –

feedback on CP15/30 and

final rules and guidance

2017FCA clarifies expectations on

pensions transfers

107

• Rules are set out in COBS 19.2.2R(1) – which determine what a firm must do in preparing and providing

transfer analysis.

• In particular, the rules require a comparison between the benefits likely (on reasonable assumptions) to

be paid under a DB scheme or other safeguarded benefits with the benefits afforded by a personal

pension scheme, stakeholder scheme or other pension scheme with flexible benefits

• Section 48 Pension Schemes Act 2015 require that the trustee/scheme manager check that advice has

been taken before a transfer can proceed involving a DB pension or other safeguarded benefits worth

more than £30,000. The advice must be provided by a firm with the permission to do so.

• Recommendations to transfer should not be based solely on critical yield

• Only firms with FCA permission may advise on pension transfers. However some confusion arose in that

firms without permission could delegate this process to an FCA authorised firm.

• The FCA also gave advice on how to deal with insistent clients

• The FCA also gave advice on the parameters around personal recommendations

• The FCA distinguished between ‘pension transfer’ and ‘pension switch’ (the latter is not under any

requirement to take advice).

FCA’s expectations on pension transfers

108


June 2017FCA publishes CP17/16 –

advising on pension transfers

March 2018FCA publishes policy

statement PS18/6 - Advising

on Pension Transfers –



March 2018FCA publishes consultation

paper CP 18/7 –Improving

the quality of pension transfer

advice

October 2018FCA publishes policy

statement PS18/20 Improving


advice

December 2018FCA FCA issues update on

pension market (based on

data collected between April

2015 and September 2018)

July 2019FCA publishes consultation

paper CP 19/25 - Pension

transfer advice: contingent

charging and other proposed

changes

109

• 1) Amending the Pension Transfer Specialist (PTS) qualification and the exam qualification standards

• all PTSs must hold a Level 4 qualification for providing advice on investments as defined in the

Retail Distribution Review, before they can give or check pension transfer advice.

• this qualification would need to be obtained by October 2020

• 2) Additional guidance on processes the FCA expected advisers to have in place before dealing with

clients and other stakeholders, in respect of what is known as the two adviser model. This guidance was

set out FCA expectations that:

• a) parties work together to collect necessary information to inform both the pension transfer

advice and the associated investment advice.

• b) undertake risk profiling, which assesses both the client’s attitude to transfer risk and attitude

to investment risk

• c) recognise that the investment advice should consider the impact of the loss of any

safeguarded benefits on the client’s ability to take on investment risk

FCA’s proposals consulted and acted on in PS18/20

110

• 3) New perimeter guidance on how firms can provide appropriate triage service without stepping across

the advice boundary

• 4) Introducing new guidance on assessing a client’s attitude to risk

• 5) Introducing new rules requiring firms to provide suitability reports when recommending a transfer

should not be made

• 6) Amending assumptions for valuing limited inflationary pension increases within a scheme

FCA’s proposals consulted and acted on in PS18/20

111

• In 2017 Tata announces restructuring to keep loss making UK operations afloat

• In April 2017 a surge of transfers out of the DB pension scheme begins

• In October 2017 members are presented with three choices: Pension Protection Fund, new (but lower

increase) defined benefit scheme, or transfer out in to private pension scheme.

• Vast reports of vulture firms engaged in aggressive marketing to convince people to switch from DB to

DC pensions. Chicken and chips advice sessions etc.

• Problem of vulnerable consumers having to make complex decisions

• The FCA has been heavily criticised by the Treasury Select Committee for failing to act when problems

arose

The Pension Story – British Steel

112


June 2017FCA publishes CP17/16 –

advising on pension transfers

March 2018FCA publishes policy

statement PS18/6 - Advising

on Pension Transfers –



March 2018FCA publishes consultation

paper CP 18/7 –Improving


advice

October 2018FCA publishes policy

statement PS18/20 Improving


advice

December 2018FCA FCA issues update on

pension market (based on

data collected between April

2015 and September 2018)

July 2019FCA publishes consultation

paper CP 19/25 - Pension

transfer advice: contingent

charging and other proposed

changes

113

• 1) Addressing initial conflicts by dealing with contingent charging

- bans on contingent charging for DB transfers and conversions, except for specific groups of

consumers with certain identifiable circumstances

- where contingent charging is permitted, the amount charged must be the same as if the advice

was non-contingent.

• 2) Addressing ongoing conflicts: strengthening the requirements on firms to consider an available

workplace pension as a receiving scheme for a transfer

• 3) Improving disclosure of advice charges before the advice process starts and improved suitability

reports

• 4) Requiring PTSs to complete 15 hours of continuing professional development in a year

• 5) Extending the range of data the FCA currently gets from advisors

Pension transfer advice: contingent charging and other proposed changes CP19/25 (July 2019)

114

• Pension Freedoms were introduced to promote choice and efficiency in the pension market

• BUT – now the FCA views pension transfers (away from a workplace pension) to be against a

consumer’s interest in most cases.

• A recent Dear CEO letter (21 January 2020) stated that pension advisors should start from the premise

that a transfer is not in the best interests of their client. In the same letter the FCA acknowledges the risk

of scams and ‘vulture’ firms targeting pension transfer customers.

• When the FCA collected data (between 2015 and 2018) and discovered that 69% of pension advice

resulted in a recommendation to switch – it felt that this was too high and indicative of unsuitable advice

• The most recent consultation paper has increased the disclosure requirements on pension transfer

specialists, introduced requirements for their ongoing professional development and has proposed bans

on contingent charges (e.g. fees are only charged where a transfer is effected – leading to an increased

tendency amongst pension advisors to recommend a transfer)

The Pension Story – the paradox

115

• The FCA published retirement income market data in September 2019

• Data appeared to show pension transfers were still very prevalent and arguably represented a ‘threat’

– 48% of pension plans were accessed without regulated advice or guidance

– 4 in 10 pension pots were accessed the first time and 90% of these resulted in full withdrawals

• FCA action in the DB transfer space does appear to be working

• Around 57,000 transfers from DB to DC schemes took place in 2018/2019

• The number of transfers in the second six months of this period was down 24% on the first six month

period.

• This was also ‘notably’ lower than the six month period between October 2017 and March 2018

• The FCA is hoping that the decline reflects greater awareness of the risks of DB to DC transfers

Are FCA interventions working?

116

Law around the world

nortonrosefulbright.com

Norton Rose Fulbright US LLP, Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP and Norton Rose Fulbright South Africa Inc are separate legal entities and all of them are members of Norton Rose Fulbright Verein, a Swiss verein. Norton Rose Fulbright Verein helps coordinate the activities of the members but does not itself provide legal services

to clients.

References to ‘Norton Rose Fulbright’, ‘the law firm’ and ‘legal practice’ are to one or more of the Norton Rose Fulbright members or to one of their respective affiliates (together ‘Norton Rose Fulbright entity/entities’). No individual who is a member, partner, shareholder, director, employee or consultant of, in or to any Norton Rose Fulbright entity (whether or not such individual is

described as a ‘partner’) accepts or assumes responsibility, or has any liability, to any person in respect of this communication. Any reference to a partner or director is to a member, employee or consultant with equivalent standing and qualifications of the relevant Norton Rose Fulbright entity.

The purpose of this communication is to provide general information of a legal nature. It does not contain a full analysis of the law nor does it constitute an opinion of any Norton Rose Fulbright entity on the points of law discussed. You must take specific legal advice on any particular matter which concerns you. If you require any advice or further information, please speak to your usual

contact at Norton Rose Fulbright.

TAX#30206216

Refreshments & networking 15.35 – 16.05

Pensions Dashboards Industry Delivery Group -

Progress so farChris CurryIDG Principal

1. Introduction

2. Overview - The Pensions Finder Service and dashboards ecosystem

3. Progress so far and timelines

4. Challenges and considerations

5. How to get involved

Contents

120Money and Pensions Service

• The Pensions Dashboards Industry Delivery Group (IDG) is part of the Money and Pensions Service (MaPS) an arm’s length body of DWP

• MaPS is the only organisation able to exercise any control over the entire ecosystem and the IDG carries this responsibility – drawing on the minimum requirements of the legislative and regulatory frameworks.

• IDG is responsible for the entire dashboard service i.e. the technical architecture, standards/services based on the needs of users.

• Note: The IDG does not ‘deliver’ dashboards

Who we are


The Ecosystem around the Pension Finder Service:Find and View – minimum viable product

MaPS DASHBOARDEXISTING

DASHBOARDS*NEW DASHBOARDS A.N. OTHER DASHBOARD

PENSION FINDERSERVICE

IDENTITYSERVICE

GOVERNANCE REGISTERS

STATE PENSIONS A PENSION SCHEME A PENSION SCHEME

A PENSION SCHEMEA. N. OTHER

PENSION SCHEME

INTEGRATED SERVICE PROVIDER

State Pension Adapter - DWP to build

Key

MaPS Dashboard - MaPS to build

Digital Architecture - IDG to build

Other Dashboards - Industry to build

122

Ecosystem Governance Framework (Technical, security, design, accessibility performance and user experience standards) - IDG to set and monitor

* Pre-existing dashboards must meet IDG requirements to connect to the ecosystem

MaPS EXISTING DASHBOARD PROVIDERS

NEW DASHBOARD PROVIDERS

OTHER DASHBOARD PROVIDERS

OTHER PLATFORMS

Regulators

TPR & FCA

Government

DWP & HMT

INTERFACE

INTERFACE

MaPSAdvice


Phases of delivery

Source: Government Digital Services, Service Toolkit (Agile delivery phases)

Discovery AlphaPrivate

BetaPublic Beta Live

Use

r n

eed

s

Exploring the problem space

Testing options with hypothesis

Building and refining options

Continuously improving

Laying the foundationBuilding the core

service

Staged onboarding of data providers

IDG programme

phasing

Enabling an innovative dashboards ecosystem

Release 2, 3 to nMoney and Pensions Service

124

IDG Principal appointed

December 2019

Steering Group selected

Data Elements Working GroupPreparation

July 2019 September 2019

Deliverables- road-map - data elements- working groups guidance

pack- draft project plan- service architecture- customer journey review- risk analysis- user research review- business case - cost model assumptions

October 2019

Pension Schemes Bill published

First Steering Group meeting

Progress so far

Expressions of interest for working groups


January 2020

Pension Schemes Bill re-published

Second Steering Group meeting

February 2020

Defining scope and functionality of dashboards with Steering Group

Identity Verification (IDV) in the digital architecture – this is a Technology issue

Identity Matching (IDM) – this is a Data Quality issue

Income projections on a standard basis – this is a Policy/FRC/JFAR issue

Challenges and considerations

Money and Pensions Service 125

• Topics for the IDG to consider:

• Scope and functionality• Data ‘readiness’• Technical architecture and design• User journeys and interfaces• Digital ID and verification• Security• Dashboard governance• Data provider onboarding, management and sequencing• Future business model

For more information on getting involved visit:

www.moneyandpensionsservice.org.uk/pensions-dashboard/pensions-dashboards-industry-delivery-group/

Getting involved


http://www.moneyandpensionsservice.org.uk/pensions-dashboard/pensions-dashboards-industry-delivery-group/

Thank [email protected]


Panel discussion - Pension scams - The extent of the problem

Margaret Snowdon OBE, Chair, Pension Scams Industry Group Tommy Burns, Risk and Financial Crime Manager, Customer Operations, Standard Life

Christopher Brooks, Senior Policy Manager, Age UK

Closing remarks from the event ChairRenny Biggins, Retirement Policy Manager, TISA

THANK YOUPlease join us for the drink's reception

Principal Partner

Kindly hosted by

annual retirement conference slides permissions

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