Just before the closure of its consultation on value for money across DC schemes, on March 27, 2023, the Regulator published a
blog post on the reasons behind the consultation, and the next steps in its examination of the VfM framework.
The blog post focuses on the Regulator's wish to make it easier for those running DC schemes to provide information to members, and potential members, to enable them to make the best retirement-saving decisions. This is reflected in the consultation's proposal to introduce a new system of public disclosure of comparable metrics across the three pillars of value: investment performance, cost and charges, and quality of services.
The focus on default funds reflects the fact that most DC scheme assets are invested in such funds. It is therefore important that members receive value for money. Standardised, consistent, comparable data will help schemes and regulators compare relative performance, driving VfM improvements across the whole DC market.
