Stronger Nudge to pensions guidance
Consultation on proposed regulations introducing requirements for individuals to be nudged to obtain appropriate pensions guidance by trustees and managers of occupational pension schemes.
The purpose of this consultation is to seek views and evidence on the draft Regulations for delivering a Stronger Nudge to pensions guidance when individuals seek to access, or transfer for the purpose of accessing, their pension flexibilities applying to occupational pension schemes.
Sections 18 and 19 of the Financial Guidance and Claims Act 2018 provide the making of rules and regulations respectively to require scheme trustees and managers to refer individuals wishing to access or transfer their pension flexibilities to receive appropriate pensions guidance or to opt out of receiving such guidance prior to accessing or transferring their pension benefits.
The scope of this consultation relates to the draft Regulations to be made under Section 19 of the Financial Guidance and Claims Act 2018. The Financial Conduct Authority are responsible for consulting on the proposed rules to be made under Section 18 of the Financial Guidance and Claims Act 2018.
We wish to establish whether the draft Regulations achieve their intended purpose. We are seeking to understand and welcome views on any impacts and unintended consequences that the draft Regulations might have when implementing these regulations in practice. In particular, we are interested to find out what effect this may have on the customer journey, how the nudge would fit into existing provider communications and practices, and any foreseeable impacts that may surround this.