The UK’s largest pension providers revealed their progress towards meeting recent regulatory reforms and the FCA laid out its roadmap for pensions freedoms at a conference hosted by CTC Software last week. The discussion centered around pensions transfer; SIPP transfers; and illustrations and modelling.
During the discussion several big names in the UK pension world said they were happy with the progress they were making to meet upcoming deadlines although there are plenty of details that they had yet to work out.
Illuminating investor suitability reports
One issue is figuring out the final shape of illustrations and investor suitability reports. Under the new guidelines, pension providers have much greater latitude on how they show investors how much their investments will yield once it enters drawdown.
The new guidelines drop prescriptive requirements for detailed numbers of tables and the pension companies say they now have the opportunity to make something they feel is useful to investors and advisers.
Graphs and visualisations for investor illustration reports
But for many it will require a big shift in mind set from thinking about tables in paper documents to using graphical illustrations and other visualisation tools to give a meaningful overview.
Our presentation dealt with this area and offered strategies for pension providers who are considering offering on-line advice or guidance solutions to avoid ‘reckless conservatism’ when investing.
Picking up the pace on pensions dashboards
CTC Managing Director Nigel Chambers also gave us a look at potential models for the forthcoming pensions dashboard – single destination, whitelabel and ‘federated’ – being proposed by an Association of British Insurers working group and repeated his calls for the industry to pick up the pace.
Alex Smith of the FCA gave an overview of its roadmap for reforms but a key part of being a good regulatory presenter is not inadvertently revealing anything outside proper channels and in that Alex Smith of the decumulation policy unit succeeded admirably.
However Alex did provide the best diagrams yet showing all the past and forthcoming reforms and we share them here with you.
If you’d like assistance figuring out how your proposition meets FCA suitability requirements or using investor behaviour research to make better pension drawdown illustrations, please get in touch.