The Society of Pension Professionals (SPP) is urging the Financial Conduct Authority (FCA) to expand dashboard choices to empower consumers for better outcomes.
In its response to the ongoing FCA consultation on the regulatory framework for pensions dashboard service firms, SPP emphasises that the FCA needs to take the dashboard project further, stating that dashboards must “…have the ability to fully support consumers in their decision-making to enable them to achieve better outcomes. Therefore, the choices proposed must be expanded at the outset, or be expanded within a relatively short period of time, to ensure that this is achievable.”
The FCA intends to expand the definition of a new regulated activity regarding pensions dashboards by adding guidelines to its Perimeter Guidance Manual (PERG).
The consultation, which is set to close tomorrow, outlines the requirements for FCA authorisation and licence and is primarily directed at companies interested in providing pension dashboard services.
SPP warns that users may become frustrated if they are given a lot of information without receiving enough support in making decisions, other than recommendations to MoneyHelper or a Financial Adviser, particularly for those not eligible for PensionWise appointments and who cannot afford financial advice.
At the same time, dashboards that don’t provide a lot of information at first run the risk of losing consumers and having low engagement rates.
SPP agrees to remove the data export option to the PDS firm for investment advice and supports the proposed perimeter guidance.
SPP financial services regulation committee chair Jasmine Smiley says: “Those who use the dashboards will quickly become frustrated if they are presented with lots of information but are provided with little to aid their decision-making beyond the permitted (and incredibly limited) signposting contained within the FCA’s proposals. The provision of information with very limited support is highly unlikely to incentivise users to return.”
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