Following consultation in August 2014, the Financial Conduct Authority (FCA) has published the final rules applying to independent governance committees (IGCs). The rules come into force on 6 April 2015, requiring providers of workplace personal pensions to set up and maintain IGCs.
The FCA has been working closely with the DWP to ensure that all members benefit from the same good quality standards regardless of type of workplace scheme. New regulations published on 4 February 2015aim to ensure value for money in relevant workplace pension schemes.
From 6 April 2015, providers that operate workplace personal pension schemes will be required to establish an IGC, with at least five members, which will have a clear duty to act independently of the firm.
The rules outline the minimum standard for the terms of reference for IGCs, the scope of the IGC and which type of firms will need to set one up. Firms will be expected to comply from 6 April 2015 and existing IGCs will also need to ensure that they meet the rules from that date.
The FCA has confirmed that a review of the overall effectiveness of the new governance bodies will be conducted in 2017.
View the IGC rules.