TISA comments on Proposed revision to AS TM1: Statutory Money Purchase Illustrations Consultation
Renny Biggins, Head of Retirement at The Investing and Saving Alliance said: “Research shows that a key priority for consumers is knowing their estimated retirement income. This information should appear on the Pensions Dashboard, which will help substantially increase member engagement and understanding.
“As the dashboard is designed to show a consumer’s entire pension entitlements throughout their lifetime, it is essential that a consistent approach is taken in the calculation and presentation of estimated retirement income to enable meaningful comparisons to take place.
“It is proposed that all firms will need to base assumed investment growth on prescribed growth rates determined by the underlying fund(s).
“TISA welcomes the principles laid out by the Financial Reporting Council, which proposes revisions to Statutory Money Purchase Illustrations. If we can achieve better consistency across the pension framework, this will help increase consumer engagement, trust, and confidence. The Pensions Dashboard will help us move closer to achieving these outcomes.
“Retirees must also be motivated and aware of their options in order to use the Dashboard. We therefore need to build on existing momentum alongside other engagement and support initiatives, including the development of an enhanced guidance framework within the regulatory regime.
“We look forward to working with the Government and industry to develop the Pensions Dashboard alongside other long-term, strategic solutions.”
Contact:
Kuba Stawiski
Cicero/AMO
07856031906
kuba.stawiski@cicero-group.com
Notes for Editors
07856031906
The Investing and Saving Alliance (TISA) is a unique, rapidly growing membership organisation for UK financial services.
Our ambition is to improve the financial wellbeing of all UK consumers. We do this by focusing the convening the power of our broad industry membership base around the key issues to deliver practical solutionsand devise innovative, evidence-based strategic proposals for government, policy makers and regulators that address major consumer issues.
TISA membership is representative of all sectors of the financial services industry. We have over 200-member firms involved in the supply and distribution of savings, investment products and associated services, including the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, Fintech businesses, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.
As consumers, the financial services industry and the economy react to and recover from the effects of the pandemic, the importance of the three key pillars of work that TISA prioritises has never been more apparent:
- Strategic policy initiatives that influence policymakers regarding the financial wellbeing of UK consumers & thereby enhancing the environment within which the industry operates in the key areas of consumer guidance, retirement planning, later lifetime lending, vulnerable customers, financial education, savings and investments.
- TISA is recognised for the expert technical support provided to members on a range of operational and regulatory issues targeted at improving infrastructure and processes, establishing standards of good practice and the interpretation and implementation of new rules and regulations covering MiFID II, CASS, ESG/RSI, operational resilience, Cyber Risk, SM&CR and a range of other areas.
- Digital transformation initiatives that are driving ground-breaking innovation and the development of industry infrastructure for greater operational effectiveness and revenue promoting opportunity for firms. TISA has become a major industry delivery organisation for consumer focused, digital industry infrastructure initiatives – TISAtech (a digital marketplace that brings together financial institutions and FinTechs for greater collaboration and innovation) and TURN (TISA Universal Reporting Network – a digital platform providing a secure data exchange for financial services using blockchain technology) – alongside projects Digital ID and Open Savings & Investment. This reflects TISA’s commitment to open standards and independent governance.