James Moore: FCA's white knights idea has some grey areas

 

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The Independent Online

Outlook If you have a workplace pension you’re pretty much stuck with what you’re given. That’s a problem, particularly given that employers don’t put a high priority on battling with life insurance companies to ensure you get a good deal.

The Financial Conduct Authority thinks it has the solution. It wants pension providers to appoint (ahem) Independent Governance Committees to fight the good fight for you! Doesn’t that feel better?

In theory this should be a good idea. Most of the people on these bodies are supposed to have pensions experience. And they will be contractually charged with being independent.

But they’ll still be appointed by providers, and it’s hard to see them choosing people who might rock the boat too much.

What’s more, the IGC members they do choose are likely to be drawn from a strata of people who’ve been trained by and worked within an industry that hasn’t always served its customers very well.

The FCA has good intentions, but there is a reason people say the road to hell is paved with those.

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