Economic growth and the interests of pension savers can be “mutually reinforcing”, according to the chief executive of The Pensions Regulator.
Addressing the JP Morgan Pensions and Savings Symposium, Nausicaa Delfas said the Government, regulators and the market can have a huge positive impact on people’s lives.
While TPR cited reducing regulatory burden and enabling access to a broader range of diverse assets as ways in which it will help boost economic growth, Delfas said the market must also continue to innovate with new product offers, greater transparency and value for money.
Delfas said: “Economic growth and the interests of savers do not have to be in conflict. Indeed, they could be mutually reinforcing.”
Delfas said key areas for action to protect savers and enhance the system are already underway, including changes to how TPR supervises master trusts and driving better governance standards amongst trustees. Creating better value, including how schemes can invest in productive finance, will continue to be at the centre of TPR’s work.
Delfas explained: “Well-designed regulatory policies with transparency at their core can correct market failures, promote equitable growth and enhance economic stability. And in the forthcoming Pension Schemes Bill and our value for money framework, we have the potential to do all three.
“Pensions are uniquely placed to consider long-term returns, and I would urge you all to consider what more you can do, particularly around transparency in performance and associated charging structures.”
Delfas said that embracing innovation will be critical and the TPR plans to develop an innovation framework and criteria to trial new ideas later this year.
Delfas added that the digital and data revolution also provides wider opportunities to reduce regulatory burden. To support the new DB funding regime, TPR is bringing in a new semi-automated digital submission form.
“This not only gives us the information we need but saves schemes paperwork and countless people-hours. Over the coming year we plan to go further and conduct a broader review of our scheme return and supervisory returns, to identify rationalisations and remove unnecessary burdens on schemes,” she added.
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