The FCA has published the latest in its series of Regulatory Priorities reports, with the Pensions report released on 10th March. This release marks the third report in the series, following the Insurance report published on 24th February and the Consumer Investments report published on 4th March. Over the course of the year, the regulator will release nine reports in total across retail and wholesale markets.
These reports are important for all firms. They set out the FCA’s supervision priorities, explain how it intends to enable innovation and include the section “What we expect firms to do”. The latter is particularly useful for gap analyses and monitoring plans, providing firms with clarity on what “good” looks like.
The Regulatory Initiatives Grid published in December 2025 references many joint initiatives led by the Pension Reform Steering Committee Group, which brings together the FCA, the Department for Work and Pensions, His Majesty’s Treasury and The Pensions Regulator. These initiatives aim to drive innovation through proportionate regulation and support tech-enabled solutions, aligned with measures in the Pension Schemes Bill.
Examples include the Discussion Paper “Pensions: Adapting the FCA Framework to a changing market”, the regulatory framework for pensions dashboards and multiple initiatives aimed at improving value for money in pensions and retirement products.
This newly published Regulatory Priorities report for pensions focuses on helping consumers plan confidently. It stresses the importance of consistently good information, enabling informed decisions and providing support at every stage of the customer journey. In a speech to the TISA Inclusive Investing Conference, Lucy Castledine, Director of Consumer Investments at the FCA, highlighted that nearly 15 million people are not saving enough for retirement.
Across the key priorities, a few areas stand out:
Consumers should have confidence in well-run schemes that provide value for money (VFM)
The FCA continues to focus on ensuring consumers receive good value with clear pricing so they can make informed decisions. Proposals to tackle poorly performing workplace schemes within the VFM framework will be followed by a wider review into value for money in pensions and savings products that allow investment in unit-linked funds.
These initiatives aim to encourage schemes to improve value and deliver strong long-term returns. They also reflect decisive action by both the regulator and government to drive better retirement outcomes. Firms will be expected to support the FCA’s work, provide feedback on draft frameworks and start preparing for significant sector-wide changes. The operational and commercial impact on advisers and providers will be considerable. Action will be required to transfer customers to better solutions if VFM is not delivered.
Effective support for consumers
Engaging consumers in retirement investing requires high-quality information and guidance. The FCA expects firms to help consumers navigate complex decisions with timely and effective support.
Regulatory focus includes reviewing the advice boundary, developing digital planning tools and implementing pensions dashboards and guided retirement journeys. Firms are expected to act now by engaging with the FCA to build the future framework, identify gaps and take decisive action to support better consumer decisions.
Modernising pensions
The FCA is working to modernise the pensions market, ensuring consumers are not left behind and receive good outcomes, regardless of the products they hold.
The regulator is concerned about barriers affecting consumers of older or less innovative products, which are often limited by technological constraints, administrative complexity, and delivery costs. These consumers face reduced choice, flexibility and higher costs. For those at higher risk, such as “gone-away” customers or individuals with vulnerabilities, poor retirement outcomes are a real threat. The FCA’s ongoing engagement will focus on ensuring consistent good outcomes for all customers, regardless of their circumstances.
Ongoing supervisory work
The FCA’s supervisory activity is becoming more intensive and evidence driven. The regulator is moving to a “show me, don’t tell me” approach in gathering information and taking follow-up action.
The Enforcement Watch report, published on 28 January, shows that 23 enforcement operations have been opened since 3rd June 2025. Six of these relate to potential Consumer Duty breaches from multi-firm work, resulting in voluntary and own-initiative requirements (VREQs).
Supervisory focus will continue to be on poor product governance, complex charging structures, lack of transparency for consumers and oversight of appointed representatives.
Independent challenge is key to success
Understanding the FCA’s Regulatory Priorities is only the first step. Firms must also ensure their governance, product frameworks and monitoring processes align with expectations. Good data is essential to evidence positive consumer outcomes.
Drivers such as value for money, quality of communication, and good consumer decision-making run through the Consumer Duty rules and outcomes. Firms should take steps to continuously self-evaluate and act to improve outcomes.
At TCC Group, our experts specialise in Consumer Duty adherence and outcomes-monitoring frameworks. We help organisations test their control frameworks against the FCA expectations and develop practical next steps.
If you would like to discuss how the FCA’s Regulatory Priorities may impact your firm, contact our regulatory experts to explore how we can support you.
