The UK Government remains “as committed as ever” to making pension dashboards a reality, Pensions Minister Laura Trott has said, despite the latest delays.
It had previously said more time is needed for the complex build, of the platforms to let people see all their pensions in one place, to be set up.
Trott said there would be a “new approach to delivery that allows us to work more collaboratively with the pensions industry”.
In a written statement on Thursday, she said: “Rather than setting out the entire staging timeline in legislation, we will instead set this out in guidance which we will collaborate on with industry this year.
“This will give the programme the flexibility it needs to ensure this complex project is completed effectively.”
She added: “In recognition that the requirement to connect to the digital architecture should remain mandatory, we will include a connection deadline in legislation of 31 October 2026.
“This is not the dashboards available point – the point at which dashboards will be accessible to the public – which could be earlier than this.
“The government remains as committed as ever to making pensions dashboards a reality and we are ambitious about their delivery.
“I am confident that this re-appraised approach will enable us to make significant progress on delivering dashboards safely and securely, enabling consumers to take advantage of their benefits to plan for retirement.”
Rocio Concha, Which? director of policy and advocacy, said: “Pensions dashboards have the potential to be a game changer by helping savers to keep track of their pots in one place.
“Seven years have passed since the Government first made a commitment to introducing a dashboards, so it’s hugely disappointing to hear that the date by which all schemes will be connected will be delayed by a further 12 months.
“With billions of pounds lost or dormant in unlocated pensions, the need for dashboards is stronger than ever.
“The DWP [Department for Work and Pensions] must be ready to oversee compliance and to step in robustly should some firms fall below the required standards.”
Nigel Peaple, director of policy and advocacy at the Pensions and Lifetime Savings Association, said the statement provided “some helpful clarity and flexibility for the industry”, adding: “We would, however, highlight that many in the pensions industry would have preferred the new staging timeline to be set out in regulation, as was previously the case, rather than only in guidance, as is now planned.
“To make this new approach work, it will be necessary for the dashboards programme to work in a very open, transparent and collaborative way such that all parts of the government involved in the project, and all those involved from across the industry, can work together as one.
“As we have said since the start of the programme, this is a highly complex undertaking, early delivery is less important than successful delivery.”
Separately, first-time investors in cryptoassets should be offered a 24-hour cooling-off period by those marketing them, according to the Financial Conduct Authority (FCA), which is introducing an advertising crackdown.
Its new advertising rules will mean firms marketing cryptoassets to UK consumers will need to introduce a cooling-off period for first-time investors from 8 October 2023.
The regulator’s policy statement on financial promotion rules for cryptoassets said: “Even when the financial promotions regime comes into force, cryptoassets will remain high risk and largely unregulated.
“Consumers should only invest in cryptoassets if they understand the risks involved and are prepared to lose all their money – consumers should not expect protection from the Financial Service Compensation Scheme (FSCS) or Financial Ombudsman Service if something goes wrong.”
As part of the package of measures designed to ensure those who buy crypto understand the risks, the FCA said “refer a friend” bonuses will also be banned.
The regulator said it wants consumers to receive timely, high-quality information that enables them to make effective investment decisions without being pressured, misled or inappropriately incentivised to invest in products that do not meet their needs.
Firms promoting cryptoassets must put in place clear risk warnings and ensure adverts are clear, fair and not misleading, the regulator said.
The FCA’s rules follow UK Government legislation to bring crypto promotions into the regulator’s remit.
Sheldon Mills, executive director, consumers and competition at the FCA, said: “It is up to people to decide whether they buy crypto, but research shows many regret making a hasty decision; so our rules give people the time and the right risk warnings to make an informed choice.
“Consumers should still be aware that crypto remains largely unregulated and high risk; those who invest should be prepared to lose all their money.
“The crypto industry needs to prepare now for this significant change and we are working on additional guidance to help them meet our expectations.”
The FCA’s research indicates that 9% of adults owned cryptoassets in August 2022, which is around double the 4.4% it had estimated in 2021.
Its research indicated that while 79% of users bought cryptoassets using disposable income or cash, 6% had bought them using credit or borrowed money.
The FCA’s policy document added: “We will take robust action against firms breaching these requirements.
“This may include, but it is not limited to, requesting takedowns of websites that are in breach, placing restrictions on firms to prevent harmful promotions, and enforcement action.”
The regulator is also consulting on additional guidance, setting out expectations of firms advertising cryptoassets to UK consumers. Those wishing to have their say will have until 10 August to respond.
Paul Roach, co-founder of Edinburgh-based crypto platform Zumo, said: “Getting the right regulatory framework in place is a priority for the digital assets sector, but we really need the FCA to work more closely with other government bodies so that everyone is singing from the same hymn sheet.
“On the one hand you have a positive consultation by HM Treasury and a report by the UK's Crypto and Digital Assets APPG that recognises the growth and potential of the sector, and on the other hand you have this language from the FCA, which serves to sow fear and make it seem that everyone will lose their money.“
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