Commenting on the need for consistency in how the pensions industry measures value in response to the FCA’s Value for Money in Pensions Consultation, closing today, Lee Hollingworth, Partner, Hymans Robertson, says:

“We agree with the ambition this consultation it is trying to achieve, but putting this into practice is the challenge. Value, it is said, is in the eye of the beholder, but varied interpretation is leading to inconsistency and confusion. Enabling a consistency of approach across all workplace pensions is highly desirable. With the FCA undertaking this consultation, and the DWP’ recently publishing its consultation on improving value for members of DC occupational schemes, now is an opportune time to address this point.

“While there are some common metrics within both these consultations, there are a still a number of differences in the approaches proposed. In addition, a more prescriptive framework will help improve relative comparisons. Whilst we appreciate that this consultation is aimed at a broad range of firms and products, nevertheless the use of language used in the definitions is too vague and gives too much wiggle room.”