Desktop Banner

Mobile Banner

Trustees should plan ahead to avoid dashboard compliance failures, says RSM UK

As the FCA publishes its final pensions dashboard rules, which must be implemented by 31 August 2023, RSM UK is concerned trustees face ever increasing regulatory pressure. The new pensions dashboard rules state that, by 31 August 2023, FCA Regulated pension providers must:

Elisabeth Storey, pensions audit director at RSM UK says: ‘While this deadline has been extended from 30 June 2023, the regulatory requirements still add further pressure to trustees already grappling with increasing regulations around investment disclosures (ESG and TCFD requirements), complying with the Single Code, dealing with recent market turmoil (and in some cases revisiting their investment strategies), whilst making decisions about which method to use for GMP Equalisation. All this is on top of the day job of running the pension scheme and ensuring members are receiving the right benefits at the right time. With all this to contend with, many trustees may not yet even have pensions dashboards requirements on their agenda, but they need to plan ahead now.

‘We welcome the introduction of pensions dashboards which will enable consumers to find simple information about their pensions, improving retirement planning. But we have already seen huge resource pressures on pension scheme administrators over the summer, with noticeable impacts upon audit timetables. There is real concern that, with limited resource to cope with the demands, trustees will need to make decisions about what to prioritise. If dashboards are not already on the board’s agenda, this must be addressed by trustees as soon as possible, not least to ensure that steps are being taken to ensure data accuracy. In some cases, other pressing priorities, such as delivering GMP Equalisation, may slip as a result.’

Trustees need to consider the following:

Elisabeth Storey concludes: ‘With the regulator being given new powers to issue compliance notices and penalties to trustees and managers if they fail to comply with pensions dashboards, trustees will have some decision to make. Under the proposed regulations, TPR could issue penalties of up to £5,000 to individuals, and up to £50,000 to corporations, for a single compliance breach. These penalties could be applied to third parties if they caused the breach, which is why planning ahead now is crucial.’

authors:elisabeth-storey