"This announcement is very much welcomed to reflect both the modern day financial services sector we are operating in, and in terms of meeting the common objectives of both The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) in respect of preventing consumer detriment, particularly around Defined Benefit (DB) Pension Schemes and Pension Transfers.
"Since the inception of Pensions Freedom, more and more control and responsibility for decision-making around pension provision has been passed back to consumers, who often do not fully understand all of the complexities of legacy pension regimes, including the features and benefits of their retirement schemes. Pension Fund consolidation and the advent of new Superfunds is likely to preserve funding levels on DB Schemes, maintain cost efficiencies and would mean that there is reduced risk of consumers wanting to take transfers between schemes. It also gives TPR the opportunity to apply some fresh thinking to the regulatory approach around the consolidation of DB schemes, rather than having to shoe-horn existing regulations to fit the need. The developments should be positive step forward for all concerned."