Documents


The SPP’s response to the FCA consultation on a new type of support for consumers with their pensions, called targeted support, as part of their Advice Guidance Boundary Review. This response highlights our support for certain proposals e.g. around readymade solutions and the potential for reducing consumer harm, whilst highlighting potential issues with other elements of the proposed changes

The Society of Pension Professionals (SPP) supports the Government’s overarching objectives to both invest more in the UK and boost saver returns. However, we aren’t convinced that these proposals are the best way to achieve this.

A minimum pension fund scale of £25bn AUM isn’t necessarily going to drive additional investment diversification or deliver better saver returns but could lead to unintended consequences of reducing competition, stifling innovation and potentially disadvantaging some minority groups.

Whilst it is right for the Government to challenge the LGPS to assess its progress, the type and pace of changes being proposed run the risk of derailing some of the good work of the last decade, as well as impinging on administering authorities’ fiduciary duties. Within the LGPS it is not clear how these proposals will meet either of the Government’s objectives of improving pension outcomes for members or increasing investment in the UK.

As a result, the Society of Pension Professionals (SPP) urges policymakers to carefully reconsider both the nature and pace of some of these proposals.