The Pensions Regulator has published a consultation on dashboards compliance and enforcement, setting out its expectations on how schemes should comply with dashboards rules, and its approach to regulating this area. The consultation runs until 24 February. 

 

The regulator said it is keen to hear from schemes of all sizes, their administrators and integrated service providers to ensure the new policy is understood by, and meets the needs of, the industry. 

 

Executive director of regulatory policy, advice and analysis, David Fairs, said TPR understands the next few months will be challenging for the pensions industry as it prepares for dashboards.  

“We will be supporting them by writing to all schemes at least 12 months ahead of their connection deadline to help them understand what they need to do by when, in accordance with our published guidance,” he said. 

 

Fairs reassured the industry that TPR will take a “pragmatic” approach to compliance, but said it was not acceptable for schemes and their administrators to do nothing. “We'll take a dim view of wilful or reckless non-compliance,” he said. 

 

Schemes should be looking at their data management, internal governance and how they will meet their obligations, he added, noting that savers’ experience will be used as a guiding principle. 

 

“We want to empower savers to feel confident accessing a dashboard and taking control of their long-term savings." 

 

In the trust-based space, much of the burden of complying with dashboard rules will fall on third parties, including administrators, employers and integrated service providers. New legislation enables TPR to issue such third parties with compliance notices and the power to issue fines of up to £50,000 for firms and up to £5,000 for individuals for each breach. The same applies for trustees and managers. 

 

The consultation document includes some examples of how TPR might respond to certain breaches, such as missing the connection deadline, failing to maintain connection, failing to match savers to their pensions, or failing to return value data appropriately. The regulator said it is particularly keen for feedback on these scenarios. 

 

TPR’s emphasis on using discretion and on proportionality was welcomed by Phil Brown, director of policy at B&CE, provider of master trust the People’s Pension. 

 

However, schemes need more interaction with the regulator ahead of the deadline, Brown added.  

 

“All parties... are in the early stages of understanding how dashboards will really work once schemes have connected. Further talks between the regulator and data providers will be necessary as connection deadlines get closer,” he said. 

 

Schemes have not fully embraced dashboards to date, it appears. A recent webinar poll by law firm Sackers showed more than 60% of 53 defined benefit and defined contribution schemes have yet to start work on getting dashboard ready. 

  

Sackers associate director Oliver Topping said progress was made in the last year, but there were many challenges ahead, with schemes “waiting for the pieces to start slotting properly into place so they understand exactly what’s needed”, including having waited for the regulator’s consultation. 

 

The biggest challenge schemes say they face is returning accurate DB data. The matching process was seen as the next most challenging area. 

 

The first schemes are due to connect in August next year. The dashboards timetable is ambitious, Topping noted, advising trustees to check and confirm their staging date, and put in place a detailed project plan for those overseeing and carrying out the work. 

 

TPR's consultation follows dashboards regulations being approved by parliament. Last month, the Pensions Dashboards Programme published revised standards for connecting to the dashboards ecosystem. 

 

How well prepared are schemes for connecting to dashboards?