Rules that will govern how pensions dashboards are run have been published by the Financial Conduct Authority (FCA).
The rules, which apply specifically to firms operating commercial pensions dashboards, require them to meet high standards around consumer protection and engagement.
Dashboard firms will need to comply with the FCA’s Principles for Businesses and Consumer Duty, which call for efforts to prevent scams, clear disclosures, and safeguards against high-pressure sales tactics.
Customer support
Under these rules, companies must provide customers with clear choices and instructions to help them make pension decisions. The FCA’s intention is to protect users from exploitation and help create a secure environment.
Last month the government confirmed it had revised its plans for the rollout of pensions dashboards, as pension minister Emma Reynolds said that the government-backed Money and Pension Service (MaPS) dashboard would launch first.
A date for wider commercial dashboard roll out is still to be confirmed.
All pension dashboards will be designed to give people a single, digital view of all of their pension plans as well as helping employees find lost pots and assess their retirement savings overall.
Consumer confidence
Regulations may be updated in future, the FCA added, as broader financial initiatives like open finance and small pension pots evolve.
“We want pension dashboards to be platforms where consumers can confidently and positively engage with their pensions and be safely supported in retirement planning,” the authority said.
“If consumers lose confidence in dashboards, due to firms not acting in consumers’ best interests, we risk losing the opportunities dashboards offer and the ability to build on this in the future.
“We consider our framework of rules is proportionate for the first iteration of dashboards. But we also see the potential for dashboards to develop into, or contribute to, something more sophisticated over time.”
AJ Bell head of public policy Rachel Vahey said: “Pensions dashboards have the potential to be crucial in helping people plan and save for retirement. A dashboard will give people an overall view of all their pension savings built up so far – where they are, how much they are worth, and what level of retirement income they could expect.”
Roll out date
However, Vahey emphasised that a “definitive timescale” for the roll out of commercial dashboards was still missing.
“Setting a clear date for commercial dashboards would allow providers to start planning in earnest. The development of dashboards has already been a bumpy ride with numerous stops and starts, and changes in who is responsible for getting it over the starting line.
“But more importantly, this is a huge let-down for customers. Dashboards have the potential to empower pension savers. But instead of a single government outlet, they need to be offered by a wide variety of organisations to make sure as many people as possible can reconnect with their lost pensions.”
