FCA sets out the regulatory framework for pensions dashboard service firms

The FCA has today published its long awaited Policy Statement PS24/15 and its final handbook rules and guidance setting out the regulatory framework for pensions dashboard service firms.

Any entity (other than the Money and Pensions Service (MaPS)) that wants to operate a pensions dashboard service (PDS firms) will need to ensure that they obtain the regulatory permission to carry out this specific activity (and if they are not already, will also need to become FCA authorised). PDS firms will also need to adhere to Government regulations as well as design standards issued by the PDP (the pensions dashboard delivery group) on behalf of MaPS.

The FCA’s final rules have been a long time coming – its consultation closed in February 2023, and rules had originally been expected in the summer of 2023.  Today’s publication is not, however, the end of wait for entities wishing to become authorised as PDS firms.  The FCA’s authorisation gateway is not yet open (and no timetable has been set for when this will occur).  Firms will of course need to government and the PDP to produce the information and guidance that is necessary for firms to design and build their services.  The FCA say that the gateway will only open “when it is possible for applicants to show they are ready, willing and organised to undertake the new activity of operating a pensions dashboard service.” Of course this aligns with the wider expectations around pension dashboards – the Minister for Pensions recently announced that the PDP has been directed to prioritise the connection and launch of the non-commercial dashboard provided by MaPS (MoneyHelper), before turning to the work of connecting commercial dashboard services. The intention here is to ensure a period when only the MoneyHelper dashboard is operational (thereby providing an opportunity to obtain better insights into customer behaviour and ensure greater confidence in operational delivery, security, and consumer protection before private sector dashboards are connected). 

The FCA’s intention in publishing these rules now is to give firms some certainty over the initial requirements.  This includes the disclosures, warnings and explanations the customer will receive when viewing data on the dashboard, and disclosures and presentation of user-choices at the point of exiting the dashboard (including what they can do with the ‘view data’ detailing their pension pots).  The rules also place specific requirements on firms offering post-view services.  Firms can utilise these rules to begin the work of designing their services, and undertake the research and testing they need in order to 

You can find the FCA’s policy statement here