Wednesday, February 1, 2023
HomeFinancial PlanningDashboards may open door to 'sprint for DC money'

Dashboards may open door to ‘sprint for DC money’

New guidelines into account by the FCA will put Pensions Dashboard suppliers in a “prime place within the sprint for DC money”, based on former pensions minister Steve Webb.

The FCA is at present consulting on the regulatory framework for Pensions Dashboard Service Corporations.

In accordance with LCP associate Steve Webb, examination of the plans, which have been revealed final week, that they may give an enormous benefit to DC consolidators who arrange their very own dashboards. 

Within the pilot part the Pensions Dashboards Programme has introduced three trial suppliers – an insurer (Aviva), an open banking platform (Bud) and an open information fintech (Moneyhub) – however it’s anticipated that a variety of market members will select to supply a Pensions Dashboard.

One key function of Pensions Dashboards would be the capability of customers to export their information. 

Mr Webb mentioned: “Though dashboard suppliers could select to not provide this facility, it appears extremely probably that many will provide the person the power to obtain their very own information and in addition to export the information to a supplier’s website.”

The FCA session mentioned that though this raises potential dangers, there can be issues if customers couldn’t export their very own information. Nevertheless, the principles suggest that there would solely be two locations the place the person may export their information, to themselves or to the dashboard supplier (or companies in the identical group).

Mr Webb mentioned: “Given the massive variety of fragmented pension pots, not least for the reason that introduction of automated enrolment, it’s broadly anticipated that one consequence of the launch of Pensions Dashboards is that people will probably be prompted to consolidate their DC pensions with a single supplier. 

“But when the one direct approach by which client information could be exported to a supplier is that if they function a Pensions Dashboard, this can put such suppliers at a head begin in terms of ‘harvesting’ DC pots.”

He warned it may put dashboard suppliers in prime place in contrast with different consolidators who must get customers to obtain information – presumably from a rival’s dashboard – after which re-upload it to a unique website. 

He mentioned: “We’re very more likely to see a ‘sprint for DC money’ when dashboards go stay, and the restrictions on information export imply suppliers who arrange their very own dashboard are more likely to be the winners of that race.”



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