The Financial Conduct Authority has updated its Handbook – its definitive list of rules and guidance – to include a section on the forthcoming Pensions Dashboards.
The change to the Handbook will become effective from 30 March.
The FCA said Pensions Dashboards – an all-in-one location for pension savers’ retirement plans – will support consumer decision-making.
Pensions Dashboards will provide an online hub for pension savers to keep track of their pensions but will take several years to roll out in full.
The update comes as pension providers and advisers prepare for Pensions Dashboard testing next year.
Meanwhile, new research from specialist pensions law firm Sackers has revealed that lack of legislation and regulations is proving to be the main stumbling block for schemes getting ready for the Dashboards.
Oliver Topping, associate director at Sackers, said: “Over the course of the next few years, several thousand pension schemes will have to connect, and remain connected, to the Pensions Dashboard ecosystem. Progress has been made across the industry in the last year, but as we can see from our survey, there are many challenges ahead.
“More developments are still needed to complete the jigsaw, including the Pension Regulator’s consultation on dashboard compliance and enforcement. Unsurprisingly, our survey shows that the majority of schemes (over 60%) are waiting for the pieces to start slotting properly into place so they understand exactly what’s needed.”
Over half of the 53 pensions scheme trustees and employers surveyed by Sackers had chosen how to connect to the Pensions Dashboards architecture. Half of those already connected had decided to use their existing third-party administrator’s connection method to connect to the Dashboards.
A third (33%) said they have yet to choose how to connect.
Providing accurate DB value data (40%) and the member matching process (19%) were seen as the biggest challenge faced by pension schemes, with both relying on the availability and accuracy of data.
