Price and value assessments within unit-linked pensions and savings products were a central theme of the FCA’s review. While examples of good practice were identified, the findings also highlighted areas where firms need to do more. In particular, the regulator raised concerns about customers invested in older products, many of which are now closed to new savers but continue to hold significant numbers of customers. The FCA found that some customers in these legacy arrangements could be receiving poorer value than those invested in newer products, citing complex charging structures, older product designs and weaknesses in firms’ data as contributing factors. The regulator also noted that where data is incomplete or of poor quality, it becomes more difficult for firms to assess whether customers are receiving fair value and to identify opportunities for improvement. 

This sits within the FCA’s wider work on pensions and long-term savings. Engagement with firms is now focused on the barriers they face when seeking to improve value for customers, particularly within closed books. The work also supports broader pensions reforms, including targeted support and pensions dashboards – and forms part of the FCA’s wider programme to modernise pensions and long-term savings.