Here is our weekly summary of key legal and regulatory developments relevant to occupational pension schemes, which you might have missed, with links for further information.
The Pensions Regulator (TPR) has updated its communicating and reporting guidance for defined contribution schemes to include a link to an online tool for trustees who are booking a Pension Wise guidance session on behalf of a member. This flows from the changes being implemented as part of the stronger nudge towards pensions guidance, which comes into force on 1 June. It will impact trustees of schemes that provide flexible benefits (i.e. cash balance and defined contribution (DC), including additional voluntary contribution arrangements). Seek legal advice if you have any questions about the new requirements.
TPR and the Financial Conduct Authority (FCA) have published their feedback statement on driving value for money in DC schemes, which follows on from a joint discussion paper published last year to establish how best to measure value for money. As part of this, TPR and the FCA have announced a new initiative to develop a common approach across the pensions industry for measuring value for money in DC arrangements. The aim is to allow access to consistent data on investment performance, costs and charges, and service standards. The target period for issuing a further consultation paper is Q4 of 2022.
A cybercrime and fraud working group of the Pensions Administration Standards Association (PASA) has launched a cybercrime protection checklist, in order to assist scheme administrators. The checklist expands on the four key areas covered in PASA's guidance issued in November 2020, being: (1) meet legal, regulatory and industry standards; (2) understand your organisation’s vulnerability to cybercrime; (3) ensure your organisation is resilient to cybercrime; and (4) remain able to fulfil key functions (after a cyberattack).
In our latest instalment of #AttentionPensions, partner Chris Harper considers how trustees can weigh up their environmental, social and governance (ESG) approach for the next 12 months and suggests following a three step plan: “educate, formulate and initiate”.
If you would like specific advice on any of these issues, or on anything else, please contact a member of our Pensions team.