Pensions industry satisfaction with FCA improves, survey finds

The pensions industry is more satisfied with the FCA than it was last year, according to a new survey.

The study carried out by the FCA’s Practitioner Panel – one of a number of panels with a statutory responsibility to oversee the regulator – shows that in 2016, the long term savings and pensions sector rated its satisfaction with its relationship with the FCA at 6.9 out of 10.

This improved to 7.4 this year.

However, scores from pension companies for the FCA’s effectiveness, at 6.7 out of 10, remain lower than sectors such as wholesale banking and retail lending.

For pensions companies that scored the FCA poorly, the most common reason was that they thought “the FCA should be doing more to prevent wrong doing”. They were also more concerned than other sectors about the regulator’s dealings with larger firms.

Fewer pension companies said they were using external advisers to get information about the FCA than last year, with a fall of 73 per cent to 57 per cent.

They said they were more likely to use FCA resources themselves, for example its Regulation Round-up emails, but did not report having any more regulator contact with the FCA than they did last year.

FCA Practitioner Panel chair António Simões says “Last year we identified that there were concerns around the competition objective, and that the life and pensions industry was more generally dissatisfied with the work of the FCA than other sectors. To see progress against both these points is a sign that the regulator is heading in the right direction.

“The panel will continue to work with the FCA to address the issues raised in the survey about communication, volume of regulation and the challenges of Brexit.”

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