PARLIAMENTARY WRITTEN QUESTION
Pension Funds (22 February 2016)

Under Financial Conduct Authority (FCA) rules introduced in April 2015, independent governance committees (IGCs) have a clear duty to challenge providers on the value for money of their workplace pension schemes, acting in members’ interests, raising concerns and making recommendations as appropriate. The provider must also make arrangements for member views to be directly represented to the IGC.

The provider’s board has a “comply or explain” duty in response to recommendations from the IGC and if the IGC is not content with the board’s response it can escalate to the FCA, to members of the scheme and to the public. When coupled with the IGC’s duty to act in members’ interests, this provides a practical and direct way of ensuring good member outcomes.