FCA consultation response on the VfM framework

Commenting on the consultation on the VfM framework, Alison Leslie, Partner and Head of DC Investment, Hymans Robertson, said:

"We're pleased to see the FCA's response to consultation CP24/16 today. From an investment perspective we particularly welcome the inclusion of forward looking metrics which we believe is essential as part of the value for members assessment. We also welcome the pragmatic approach shown to the disclosure of costs and charges for vertically integrated firms as well as the reduction in reporting period to 10 years from 15 years.

“We welcome the continued review of the member survey and when and what this will contain as its frequency and composition will be important to get right at the outset to ensure its success as part of the framework.

“The use of a central repository whilst on the face it makes sense needs to be used with caution particularly given the use of differing assumptions by schemes as this could lead to misleading and inconsistent comparison approaches.

“Finally, whilst we understand the purpose of the new category we still believe few schemes will use the not value category unless a bulk transfer is imminent, making the need for an amber category almost redundant.

“We are pleased to see the industry input being carefully considered and responses to them being balanced and pragmatic which we believe strikes the right balance between transparency and pragmatism in the interests of value for members."

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