Pension Schemes Bill

Debate between Crispin Blunt and Paul Burstow

Tuesday 25th November 2014 Commons Chamber

[Crispin Blunt]

Those would be matters for the FCA. It would regulate the guidance and say how it should be implemented, and state the consequences if people are misguided in the process. The point about putting “must” into the Bill is to be clear that the rather basic duty to assess everybody’s assets would be a requirement. What the consequences would be if misguidance was delivered would be a matter for the FCA. I do not want to get into that territory—it is a rather more expert territory than I would want to address to provide the solution my hon. Friend seeks.

I will conclude with a quote in support of my arguments from the director of policy and deputy director general of the Association of British Insurers, Huw Evans. He made it clear today that:

“While the Treasury is responsible for deciding the content of the guidance and delivering the online service, other critical partners also need certainty soon including the pension providers who have to signpost their customers to it, the FCA which needs to regulate it and the Government’s formal delivery partners, Citizens Advice and the Pensions Advisory Service…It is critical for the success of the reforms that the vast majority of customers use their new-found freedoms to make a choice that is right for them…It is very important at this stage that Ministers hold their nerve and stick to their original plan of a broader based guidance service that can genuinely help people approaching retirement to consider everything they need to be thinking about to take decisions about their finances…The Chancellor was right to think a guidance service was a necessary ingredient in the new world of pension freedom; now he needs to ensure it is worth having.”

That is what amendment 73 seeks to assist in doing.

[Paul Burstow (Sutton and Cheam) (LD)]

I will be very brief in my support of the amendment that stands in my name and the name of my hon. Friend the Member for Reigate (Crispin Blunt).