FCA consultation on detailed rules and guidance for new VFM framework—key aspects and implications

Table of contents

• What is the background to the FCA’s consultation?
• What is being proposed and why?
• Implications and next steps—what do we expect

Article summary

Pensions analysis: On 8 August 2024, the Financial Conduct Authority (FCA) launched a consultation (CP24/16) on detailed rules and guidance for a new value for money (VFM) framework for savers invested in default arrangements of workplace defined contribution (DC) pension schemes, which aims to reduce the number of savers with workplace personal pensions that are delivering poor value and drive better VFM across the workplace DC market through greater scrutiny and competition on long-term value rather than predominantly cost. Amanda Cooke, senior associate at CMS Cameron McKenna Nabarro Olswang, examines the FCA’s consultation paper.