The UK's Financial Conduct Authority (FCA) has published a consultation covering the rules for pensions dashboards providers.
The consultation paper outlines a regulatory framework for qualifying pensions dashboards service (PDS) firms, including proposals to allow PDS firms to develop a range of business models that add services beyond the core ‘find and view' function of pensions dashboards.
The regulator also proposes to include rules to require PDS firms to act honestly, fairly and professionally in accordance with the best interests of their customers. It said it considers this a key statement of firms' overarching obligation to treat customers fairly and resolve conflicts appropriately.
It also set out proposals to ban PDS firms from seeking to exclude or restrict any duty or liability to a customer unless the duty or liability arises and it is reasonable to do so, and ban PDS firms from accepting payments or non‑monetary benefits which would conflict with the firm's duty to act in the customer's best interests.
Also, to ban firms from charging customers (or entering agreements where a charge is, or may become, payable) for data export and post-view services unless the customer has actively opted-in.
Executive director for markets Sarah Pritchard said: "Pensions dashboards will give savers better access to their data, helping them make better decisions for their retirement. Our proposals will encourage innovation while ensuring that we have the right rules in place to protect consumers."
Pensions and Lifetime Savings Association welcomed the consultation but warned extensive user testing will be required to ensure dashboards are safe for savers.
Director policy and advocacy Nigel Peaple said: "The publication today of draft rules and standards which qualifying pensions dashboard providers must adhere to are a welcome next step towards making dashboards a reality. Industry and consumer groups will need to assess the proposals in detail before feeding back on the consultations.
"However, it is essential that dashboards are safe for savers so, now, more than ever, everyone should focus on doing dashboards well rather than quickly. Even after the new rules and standards are settled in the summer of 2023, extensive user testing will be required to ensure they work in practice. We anticipate at least 12 to 18 months of user testing will be needed from the summer of next year before dashboards can be launched to the public."
People's Partnership director of policy Phil Brown added: "At first glance, the FCA's proposals will focus the dashboards initiative on engagement with pensions and ban explicitly commercial uses of third-party dashboards.
"The FCA is right to put consumer protection first. Commercial use of pensions dashboards, including dashboard enabled transactions, should only come when customer behaviour on pensions dashboards is well understood."
