On 8 August 2024, the Financial Conduct Authority (FCA) published Consultation Paper CP24/16: The Value for Money Framework. In CP24/16, the FCA is consulting on detailed rules and guidance for a new value for money (VFM) framework for savers invested in default arrangements of workplace defined contribution (DC) pension schemes.
The proposed VFM framework aims to reduce the number of savers with workplace personal pensions that are delivering poor value, and to drive better VFM across the workplace DC market through increased scrutiny and competition on long-term value rather than predominantly cost. The FCA has developed its proposals based on market feedback to a previous joint consultation paper with the Department for Work and Pensions (DWP) and The Pensions Regulator (TPR) on a proposed VFM framework.
The proposed framework
The FCA is proposing to introduce 4 elements through the new VFM framework - it will:
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Require the consistent measurement and public disclosure of investment