The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have emphasised the "transformational” potential of pensions dashboards, but acknowledged challenges in data quality, digitisation, and scheme connectivity ahead of the 2026 deadline.

In a Work and Pensions Committee session on pensions dashboards, TPR director of trusteeship, administration, and defined benefit (DB) supervision, David Walmsley, described dashboards as a “transformational” opportunity to connect people with their pensions.

However, he stressed the complexity of the task and argued that data quality is “absolutely critical” for the success of dashboards.

To address these challenges, Walmsley explained that TPR is taking a phased approach to data quality.

The first phase, basic data hygiene, commenced last year. The second phase, set to begin "shortly", involves matching personal data ahead of next year’s connection date. The final phase focuses on data value.

In addition to this, TPR pensions dashboards business lead, Lucy Stone, said the TPR and FCA are working “well” together to align their approaches, ensuring that savers, whether in occupational or personal pension schemes, receive a consistent experience.

“It’s not just cooperation for cooperation's sake, it's really constructive. There’s real transparency and openness, including on risks and issues, which often doesn’t happen. That’s working very well,” she added.

FCA executive director of supervision, policy, and competition, Sarah Pritchard, echoed this, suggesting that consumer confidence is “crucial” for the success of pensions dashboards.

“Fundamentally the cooperation is essential because if you are you are a consumer it should not matter who regulates the pensions to make the dashboard a success all their data needs to be connected,” she added.

Despite optimism about industry engagement, regulators acknowledged ongoing challenges, particularly in data digitisation and ensuring all schemes are prepared for the October 2026 connection deadline.

Pritchard specifically pointed to the digitisation of records as a major hurdle for some schemes, but indicated that once completed, it should “unlock” future innovation and enhance greater consumer support.

However, FCA head of asset management and pensions policy, Nike Trost, noted the FCA was “confident” that the schemes it oversees are “making good progress” towards the connection deadline of 31 October 2026.

In addition to this, Walmsley confirmed that “the vast majority” of the largest 80 schemes it monitors are expected to connect in line with the staging profile.

“There are a very small number who won’t connect but there are very good reasons for that, for example, they are moving to an insurer, and they won’t exist, or they are changing administrators, but the vast majority are expected to connect,” he said.

Stone acknowledged the scale of the challenge, stating: “We understand this is a big program of work for industry. We are working through the issues; there are informal and formal mechanisms to feed these points in. It’s around the detail and we are working through that with industry.”

Later on in the session, Walmsley stated that TPR “stands ready” to use its powers regarding non-compliance, with Stone highlighting the regulator’s compliance and enforcement strategy.

“Our primary ambition is to resolve the issues before they happen, but we stand ready to take action where there is wilful and reckless no compliance. We do have powers available to us to do this,” Stone said.  

However, she recognised that different schemes have different needs, noting that "what works for a large master trust is different for a smaller scheme”.

As a result, she said TPR will engage with schemes early to understand their specific requirements.

Looking ahead, Trost highlighted opportunities for firms to innovate around the dashboard and the support they can offer consumers.

“Once that information is displayed, there will be a lot of need to support consumers decision making and our rules leave a lot of room for innovation in that space,” she said.

Pritchard also confirmed that the FCA would establish an authorisation gateway, requiring firms to apply for regulatory approval.

However, she noted that certain technical standards from the Pensions Dashboards Programme and other bodies still need confirmation before this can be launched, adding that the FCA aims to open it "as soon as we can."

When questioned about the deferral of the legislative deadline, Stone said that decisions are “imminent”, but said TPR was not “significantly” concerned that it is going to impact the timeline.

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