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)

STOP PRESS: On 17 December 2019, the FCA published Policy Statement PS19/30 ‘Independent Governance Committees: extension of remit’ in response to its consultation CP19/15 ‘Independent Governance Committees: extension of remit’. This policy statement sets out the final rules extending the remit of Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs, the proportionate alternative to IGCs), with new duties coming into effect on 6 April 2020. This includes a duty to report on their firm’s policies on environmental, social and governance (ESG) issues, member concerns and stewardship, and a duty to oversee the value for money of their firm’s investment pathway solutions for pension drawdown. The FCA also published the instrument implementing these rule changes Conduct of Business Sourcebook (Independent Governance Committees) Instrument 2019, FCA 2019/102. The final rules and guidance will come into force on 6 April 2020. For more detailed information on the new rules, see News Analysis: FCA extends remit of IGCs in relation to ESG reporting and investment pathways.
FORTHCOMING DEVELOPMENT: On 28 February 2019 the FCA published consultation paper CP19/10 ‘Publishing and disclosing costs and charges to workplace pension scheme members and amendments to COBS 19.8’ setting out, among other things, the FCA’s proposed