The Carbon Compass: monthly news insight

Pensions, Technology & Consumer Protection: Key Developments

June has seen several important developments across pensions and financial regulation, with policymakers placing greater emphasis on protecting consumers while supporting innovation and long-term investment.

Unlocking Pension Scheme Surpluses

The Government has launched a consultation that could allow defined benefit (DB) pension schemes to release surplus funds where it is safe to do so. Subject to independent certification and appropriate member protections, these surplus assets could be used to benefit scheme members, sponsoring employers and the wider economy.

The proposed changes are expected to come into effect from April 2027 and represent another step in the ongoing evolution of the UK pensions landscape.

Artificial Intelligence in Pensions

Artificial intelligence continues to shape the financial services industry. The Pensions Regulator has published its expectations for the responsible use of AI within pension schemes, making it clear that trustees remain accountable for decisions made using AI and must ensure appropriate governance and risk controls are in place.

The regulator also intends to use AI within its own supervisory work to help identify scams and better protect pension savers.

Raising Standards for Consumer Protection

New data protection rules, introduced this month, require firms to have clear processes for handling data complaints, acknowledge complaints promptly and keep customers informed throughout the process.

Alongside this, the Financial Conduct Authority is reviewing how investment firms support bereaved clients after research found many people felt they did not receive adequate support during what is often a difficult and emotional time.

These initiatives reinforce the industry's growing focus on delivering better customer outcomes, improving communication and ensuring firms identify and address issues before they become wider problems.

As regulation continues to evolve, staying informed is key to making confident financial decisions. If you would like to discuss how any of these developments may affect your financial planning, please don't hesitate to get in touch with the team at Carbon Financial Partners.

As always, if you have any questions about how these developments may affect your financial plans, please don’t hesitate to get in touch with the team at Carbon Financial Partners.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action. Tax and Estate Planning Services are not regulated by the Financial Conduct Authority. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.