16th November 2015
Pension Quality Mark consults on developing a Retirement Quality Mark
Today (Monday) the Pension Quality Mark (PQM) asked its holders, friends and stakeholders to respond to its consultation paper on developing a Retirement Quality Mark. The consultation document outlines how the Board of PQM wishes to consider how a quality mark for retirement products could be developed to meet the needs of savers and trustees.
The initial proposal outlined by the Board of PQM in the consultation document is that a Retirement Quality Mark (RQM) would assess retirement products provided by schemes and providers against the quality of their governance and communications.
Adrian Boulding, Chair of the Pension Quality Mark Board, commented:
"We believe a RQM could make a real difference to scheme members by ensuring strong governance to retirement products so they operate in the customers' best interests - not just at the point of sale but on an on-going basis. It would ensure there are: high quality, clear and actionable member alerts; default investment arrangements for people who are reluctant to make decisions; and provide value for money for savers.
"RQM can make a real difference by making drawdown plans much more useable for ordinary people who may not have financial expertise but who will be managing their own retirement income in future.
"A RQM could also help trustees to help their scheme members make informed decisions, enabling effective signposting of good value products; and help the development of the market for retirement products by setting out what 'good' looks like."
The consultation paper invited views on a range of issues and can be downloaded from the PQM website here . The consultation closed on Friday 15 January 2016. The PQM Board is analysing the responses before finalising its proposals following further discussions with stakeholders. It is anticipated that PQM will be open to accept applications for a Retirement Quality Mark towards the middle of 2016.