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Pension companies advised to look ‘past slender compliance’

The Pensions Regulator and the Monetary Conduct Authority have issued a joint assertion urging the pensions trade to look “past slender compliance” and take into account shopper outcomes.

The message got here in an replace to the regulators’ joint regulatory technique.

The regulators stated: “We would like companies to contemplate the wants and varieties of customers on the totally different phases of their pension journey and tailor their providing to them, with a concentrate on guaranteeing customers obtain good outcomes.”

They stated the Client Responsibility features a concentrate on key parts of the firm-consumer relationship that are instrumental in serving to to drive good outcomes for purchasers.

The outcomes relate to parts resembling:

  • Services and products — “We would like all services and products to be designed to fulfill customers’ wants and focused at these customers.”
  • Worth and worth — “We would like all customers to obtain truthful worth. Companies might want to guarantee that there’s a cheap relationship between the worth paid for a services or products and the general profit a shopper receives from it.”
  • Client understanding — “We would like companies’ communications to help and allow customers to make knowledgeable selections about monetary services and products. In addition to guaranteeing particular person communications are truthful, clear, and never deceptive, companies might want to go additional and take into account their total method to speaking info to verify they equip customers to make efficient, well timed and correctly knowledgeable selections.”
  • Client help — “We would like companies to supply a stage of help that meets customers’ wants all through their relationship with the agency. The help companies present ought to allow customers to understand the advantages of the services and products they purchase and guarantee they’re supported after they wish to pursue their monetary targets.”

Based mostly on these parts, the regulators stated they need the pensions trade to increase its focus past slender compliance with particular guidelines and take into account the influence on customers and the outcomes.

They stated: “Linked to this, we welcome the announcement by pension suppliers and schemes of a co-ordinated trade marketing campaign to spice up understanding and engagement with pensions.”

The regulators concluded: “This co-ordinated motion is especially vital within the present macroeconomic surroundings the place savers might save much less into their pension.”



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