Marvin OnumonuThe Association of British Insurers (ABI) has welcomed the Financial Conduct Authority’s (FCA) regulatory priorities for the pensions market, which set out key focus areas for the next year.
The regulator said it will continue to work with other bodies to ensure consistent outcomes for consumers across the pensions sector.
Priorities include making sure schemes are well-run and offer value for money, encouraging firms to support consumers, backing growth and innovation, and modernising pensions and long-term savings.
The FCA expects firms to take part in developing the value for money framework and to prepare for new rules and system changes by 2028.
Firms are also expected to help savers avoid poor value schemes and to plan for new scale requirements.
The FCA said it will review pension and savings products, including those investing in unit-linked funds.
In 2024, 56% of adults with a DC pension in accumulation had over £10,000 in their pots, up from 49% in 2020.
On consumer support, firms are expected to help people make informed decisions, especially at key stages like retirement.
The FCA will continue work on advice and guidance, and on new rules for digital pension planning tools and transfers.
Additionally, the FCA wants firms to review asset allocation, consider private market investments, and check their controls.
There will be a consultation on the pension charge cap and performance fees.
The FCA will also look at how firms value private market assets.
The regulator is also looking to modernise longstanding pension products.
Firms are expected to engage with the FCA on barriers such as old IT systems and difficulties contacting consumers.
The FCA said it will consult on rules for due diligence and handling money in the self-invested personal pension (SIPP) market.
Charlie Bagley, manager, conduct regulation, long-term savings policy issues at the ABI, said: “We’re pleased to see the FCA’s emphasis on delivering long‑term value and better outcomes for savers in its 2026 Regulatory Priorities for Pensions.
“Pensions are undergoing significant regulatory change, and these priorities will help make rules more effective to create a market that works better for everyone.
“The regulator’s focus on value, clear consumer support and modernising pensions and long-term savings reflects the evolving needs of the pensions landscape.”
Bagley added: “It should give firms the tools and guidelines they need for meaningful innovation that drives change.
“Close engagement between the FCA and industry on these issues will be key in enabling firms to deliver good outcomes for all customers.
“We look forward to continuing to work with the regulator to achieve this.”
