New pensions framework for DC schemes expected to reduce provider numbers

The FCA is developing a traffic light rating system for defined contribution (DC) pension schemes in the workplace that could drive the poorest performers from the market.

By Neasa MacErlean

When ready, the system "should apply across the DC market", says the regulator, not only to the contract-based arrangements for employers but to personal pensions as well. It will focus on investment performance and service, not just on cost comparisons.