A consultation on developing a Retirement Quality Mark (RQM) has revealed support from respondents.

The consultation, by The Pension Quality Mark board, found widespread support for the role an RQM could play in helping trustees to support pension scheme members, and helping savers secure a good retirement income.

Respondents felt that a quality mark would assist trustees in signposting scheme members to products that have been assessed as being good, based on the quality of their governance and communications.

The original consultation document was published in November 2015 and it sought views on the role of an RQM and the standards it might use.

An RQM could help support the development of a robust in-retirement market that operates in the interests of savers by setting out the standards of what good looks like in relation to the governance, default investments, member alerts and the communication of charges and risk.

Adrian Boulding, chair of the Pension Quality Mark board, said they had been "greatly encouraged" by the strong support from across the industry.

He said: "We will continue to refine the standards and develop the infrastructure to support the RQM, and expect to launch the new mark later this year."

The organisation says it will carry out further discussions with pension schemes and providers interested in becoming RQM award holders, as well as the wider stakeholder community.

The Pensions and Lifetime Savings Association welcomed the RQM.

Chief executive of PLSA and Pensions Quality Mark executive director Joanne Segars said: "There's a significant amount of uncertainty and worry about the new retirement income decisions savers are having to make."
"Savers and those guiding them need help to understand what good looks like in this new breed of retirement income products."

PLSA believes that developing a set of "clear and recognisable" quality standards for retirement income solutions that people can trust will help product providers develop the type of product savers need, Segars added.

First oublished 18.08.2016

Lindsay.sharman@wilmingtonplc.com