The Financial Conduct Authority (FCA), the Pensions Regulator (TPR) and the Information Commissioner’s Office (ICO) have issued a joint statement emphasising the importance of clear, compliant communication by retail investment firms and pension providers with their customers.
The guidance makes sure providers inform customers about their options while adhering to FCA Consumer Duty and TPR’s Code and Guidance, and respecting direct marketing rules.
The statement outlines best practices to help providers meet their regulatory obligations and communicate transparently.
The aim of the guidance is to strengthen consumer trust and enable informed financial decision-making.
Firms can provide regulatory communication messages to retail customers and pension scheme members that provide neutral, factual information that supports them to make informed decisions about retail investments and pensions options, including at retirement.
The joint statement also outlines that pensions providers can provide regulatory updates to clients if the material is not direct marketing, unless clients have opted to receive direct marketing.
The FCA’s Consumer Duty has rules and guidance relating to how firms communicate with their customers.
It requires firms’ communications to equip their retail customers to make effective, timely and properly informed decisions as well as to communicate before the purchase of a product and at suitable points throughout its lifecycle.
TPR’s guidance includes understanding members’ views and needs in order to communicate with them at the right time, and in the right way, to help them make good decisions.
Additionally, to provide further information or explanation to members who may need to make informed decisions about their benefits
As well as utilising technology to enhance communication and to guide members to free resources like the MoneyHelper pension calculator.
The FCA, ICO and TPR said all three will continue to work together to ensure firms have sufficient regulatory clarity about the interaction between their regimes.
This includes for new proposals being considered as part of the FCA’s Advice Guidance Boundary Review, and the concept of targeted support.
