Dashboard dilemma
The constantly evolving regulatory landscape is providing a strong impetus for change - one that the industry cannot afford to ignore.
The dashboard, pension freedoms, simplified statements and a renewed regulatory focus on systems and controls will all put pressure on providers that have so far resisted expensive updates.
"There are a number of policy and regulatory initiatives that are almost creating a perfect storm," says Darren Philp, Director of Policy at Smart.
"Regulation is going to force the industry into a sink or swim situation."
While some providers are set up to integrate relatively smoothly with the planned pensions dashboard, the long-term success of the project will come only with universal coverage, or as near to it as possible.
This is no easy task, but policymakers have strongly hinted a preference for a legal requirement for data to be provided to the dashboard.
"Allowing people real time access to data and identity matching are big problems," Philp explains. "But customers and regulation are going to demand that this data is made available. The industry is going to have to find a way of doing it."
But how can this be achieved?
Professional Pensions has teamed up with Smart Pensions to analyse the pensions ‘technology trap' and how technological innovation could revolutionise the pensions industry. Click here to access your exclusive guide.
