The Pensions Regulator has launched a new consultation
exercise on the regulation of Defined Contribution (DC)
pension schemes. This marks the latest stage in its ongoing
campaign to put in place a suitable framework for the regulation of
DC schemes. It will assume increasing importance as more and more
employers become subject to the new automatic enrolment
legislation.
Why this? Why now?
There are specific reasons why the Regulator has embarked on
this exercise.
There are now 205,000 private sector DC schemes in the UK, and
the Regulator has been criticised in the past for giving
insufficient attention to them. More particularly, the advent of
automatic enrolment will lead to millions of individuals being
compulsorily enrolled into pension schemes which they have not
chosen and whose workings they may not understand. This represents
a huge shift in the DC marketplace and lends an additional urgency
to the need to ensure that DC schemes are properly regulated
