Enhance has responded to the FCA’s consultation in respect of a ‘Value for Money’ framework that will apply a consistent approach to assessing the performance of DC-workplace pension arrangements. The performance assessment will include looking at past performance; costs & charges; and, quality of services provided, each being measured by prescribed criteria to allow comparison against other arrangements. The assessment will result in an overall red, amber or green ranking, with prescribed outcomes for those arrangements with an amber of red ranking. Where SIPP provider has not sought to establish a workplace arrangement but are used by members who direct an employer to contribute, therefore technically fall within the definition of a workplace scheme, these are proposed to be exempted from the VfM framework requirements.

The full response can be downloaded here