PensionBee responds to the Financial Conduct Authority’s latest discussion paper ‘DP24/3: Adapting our requirements for a changing market’ to improve outcomes for savers in the UK Defined Contribution pension market.
Lisa Picardo, Chief Business Officer UK of PensionBee, commented: “Decades of failed attempts and working groups have shown that self-regulation in the pensions industry does not work.
“Poor provider practices, particularly among workplace providers who are serviced by unregulated administrators, have led to unacceptable delays in pension transfer times, which have been increasing since 2018.
“Since consumers often have no choice over their workplace pension provider, these delays erode trust in pensions as a whole.
“It is now imperative that primary legislation, enforced by the Financial Conduct Authority and The Pensions Regulator, is established to address clear expectations for transfer times.
“That’s why we’re calling for the government to legislate for a 10-day pension switch guarantee to make six-month waiting periods for simple transfers a thing of the past.”
