FCA Defers Review Of Workplace Pension Independent Governance Committees

The Financial Conduct Authority (FCA) has postponed its planned review of the effectiveness of new workplace pension independent governance committees (IGCs), after an initial review was "broadly supportive" of their work.

The first IGCs began operating in April 2015, and were set up to fulfil broadly the same role for members of workplace personal pension schemes as trustees perform in occupational pension schemes.

The FCA had intended to assess how effective IGCs are in helping pension providers deliver value for money for workplace pension scheme members, including their effectiveness against the recommendations of the legacy audit conducted in response to then consumer protection regulator the Office of Fair Trading's critical report on the defined contribution (DC) pensions market.

It has, however, deferred this review "to allow us to focus on other priorities", as set out in its latest business plan. A 2016 review of industry progress against the recommendations of the Independent Project Board, conducted jointly by the FCA and the Department for Work and Pensions, was broadly supportive of the role played by IGCs in this...