The FCA has published a policy statement (PS15/3) which confirms the FCA’s final rules requiring firms which provide personal or stakeholder pension schemes to employers to set up and maintain independent governance committees (IGCs), following an earlier consultation.
The role of IGCs will be to represent the interests of scheme members in assessing the value for money of pension schemes and to challenge providers to make changes where necessary.
From 6 April 2015, firms operating workplace personal pension schemes will be required to establish an IGC with at least five members. The rules outline the minimum standards for the terms of reference for an IGC, the scope of the IGC and which type of firms will need to set one up. Firms that have IGCs in place already will need to ensure that they meet the rules from this date. Firms with smaller and less complex workplace personal pension schemes will be able to establish a governance advisory arrangement as an alternative to an IGC.
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