The ABI has welcomed the FCA’s plans to clarify the scope of their activity for firms interested in operating a Pensions Dashboard service.

The FCA is seeking further feedback from the industry via a second consultation on the regulatory framework for commercial dashboards.

The regulator has sought views on its Perimeter Guidance, which aims to help firms understand the scope of its regulation.

It has also proposed changes to the framework which include requirements for the choice of architecture for commercial dashboards to include standardised wording, along with exit communications for users wanting to redirect to a different website or page.

Emily Mae Collins, long-term savings policy adviser at the Association of British Insurers, said: “This much-needed clarity will help to guide firms seeking to outsource elements of their dashboards function to companies outside of the regulator’s remit. We’re also pleased to see that the proposed regulated activity will cover multiple pensions dashboards. By allowing multiple dashboards there will be room to innovate to meet different customers’ needs, and an increased reach means more users will benefit from dashboards.

“As we work towards delivering this vital service, it is important we do so with the user front of mind. Dashboards must be easy to interact with so that customers feel empowered to make informed decisions.

"The proposed changes to the choice architecture of commercial dashboards risks making the customer journey complex and challenging. The amount of information, warnings and restrictions the FCA would like to implement, could be confusing and is more likely to put the customer off making decisions altogether – risking the benefits that dashboards are designed to deliver. We would like to see the FCA and PDP map out and test the end-to-end customer journey with their proposed changes to ensure that customers understand them and to check whether they add value.”

Earlier this month the National Audit Office warned that a rise in supplier costs and the delivery timetable being extended by two years have increased the government’s Pensions Dashboards programme’s estimated cost by 23%.

The UK’s spending watchdog said capacity and capability issues, including a lack of digital skills and ineffective governance, have led to the delays.

Meanwhile, the estimated gross benefits fell from £437m in 2022 to £413m in 2023. The report criticised the Money and Pensions Service (MAPS) for being unable to deliver the "major digital programme."

An estimated 16.3m people will be able to use Pensions Dashboards, the NAO said.

Pension providers and schemes are currently required to connect to government digital architecture that supports dashboards by 31 October 2026 – one year later than originally planned. Pensions Dashboards were first confirmed in the 2016 Budget.