Independent governance committees (IGCs) in workplace personal pension schemes
Independent governance committees (IGCs) in workplace personal pension schemes

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • Independent governance committees (IGCs) in workplace personal pension schemes
  • What is an IGC?
  • The regulatory framework for IGCs
  • Who is required to establish an IGC?
  • Composition of IGCs
  • Terms of reference of IGCs
  • The annual compliance report
  • Difficulties around ensuring value for money
  • Alternative to IGCs—governance advisory arrangements (GAAs)

FORTHCOMING DEVELOPMENT 1: On 15 April 2019, the FCA published the consultation ‘Independent Governance Committees: extension of remit’ CP19/15 on proposed new independent governance committee (IGC) duties; a new duty for IGCs to report on their firm’s policies on environmental, social and governance (ESG) issues, consumer concerns and stewardship, for the products that IGCs oversee and a new duty for IGCs to oversee the value for money of investment pathway solutions for pension drawdown to help make sure that consumers with investment pathway solutions get good value for money. In relation to ESGs, the FCA proposals aim to help protect consumers from investments that may be unsuitable because of ESG risks including climate change, to help make sure that consumer concerns are taken into account, and to help encourage good stewardship of investments. In CP19/15 the FCA also seeks feedback on issues relevant to its planned shared work with the Pensions Regulator on value for money in decumulation products in pensions. The FCA notes that it is developing a ‘shared view of what good looks like in workplace pension schemes and how value for money should be assessed’. It recognises that what counts as good value for money may change over time. It indicates that the outcome of