Industry Voice: How well do you know your DC members?

In terms of hard facts, most fiduciaries know very little about their UK defined contribution (DC) pension members. But data are critical to making the right choices for the default investment strategy. AllianceBernstein (AB) outline their proven process to achieve better member outcomes.

clock • 2 min read

Know Your Customer requirements are the cornerstone of modern investment regulation.  But in UK defined contribution (DC) pensions, many pension plan trustees and sponsors lack the information and analysis that enable informed decisions. So they are at risk of approving investment offerings—whether the default investment strategy or self-select fund options—without fully considering these products' suitability for their specific membership. We believe that, in time, The Pensions Regulator will explicitly prescribe proper fact finds as well as suitability mapping and documentation, because these are central to providing appropriate member outcomes. And we expect that master trusts will take the lead, and will before long be able to demonstrate that the default solutions they offer can be mapped to the needs of individual employers using evidence-based research specific to each employers' workforce.

Meanwhile, how should trustees, plan sponsors and master trusts improve their processes and membership insights so they can make decisions that are better aligned with members' needs? 

In this paper we explore the processes, tools and guidelines that can help achieve a fuller understanding of your pension plan membership's specific needs, and so enable better outcomes for your members.

 

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Past performance does not guarantee future results. The value of an investment can go down as well as up and investors may not get back the full amount they invested. Before making an investment, investors should consult their financial advisor.

IMPORTANT INFORMATION

Note to All Readers: The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This document is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AB or its affiliates. Note to Readers in Europe: This information is issued by AllianceBernstein Limited, a company registered in England under company number 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA - Reference Number 147956). The [A/B] logo is a registered service mark of AB and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein.

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