Driving Change in the UK Pension Industry: A Call to Action from Jamie Fiveash
At the recent Pensions and Lifetime Savings Association (PLSA) annual conference in Liverpool, Jamie Fiveash, the chief executive officer of Smart Pension, delivered a compelling message to the UK investment industry: it’s time to stop waiting for government intervention and start driving change from within. His remarks resonate deeply in an industry often characterized by political influence and short-term thinking.
The Challenge of Political Influence
Fiveash opened his address by acknowledging the inherent difficulties in separating politics from pensions in the current climate. With frequent changes in pension ministers and a constant influx of new ideas, the industry finds itself mired in a cycle of lobbying and adaptation that often leads to inaction. “We spend a lot of time lobbying and changing it, and then we don’t actually get it done,” he lamented. This observation highlights a critical issue: the pension sector’s reliance on governmental direction can stifle innovation and progress.
A Shift Towards Proactivity
To combat this stagnation, Fiveash urged the industry to adopt a more proactive stance. “We need to get on the front foot more,” he asserted, emphasizing the importance of taking initiative rather than waiting for legislation to dictate actions. He pointed out that the industry should not need to be compelled to act in the best interests of its customers, whether through frameworks like Value for Money or consumer duty regulations. Instead, the responsibility should lie with the industry itself to prioritize customer welfare and drive meaningful change.
Learning from Global Examples
Fiveash drew attention to successful initiatives in other countries, illustrating how the UK could benefit from a similar approach. He cited the introduction of pension dashboards and the Net Benefit framework in Australia, both of which were spearheaded by providers rather than government mandates. These examples serve as a reminder that innovation can thrive outside of governmental frameworks, and that the UK pension industry has the potential to lead rather than follow.
The Importance of Collaboration
A significant part of Fiveash’s message revolved around the need for collaboration within the industry. He argued that the government cannot afford to ignore the voices of asset owners, as their support is crucial for effective policy-making. “We should drive the change and we should drive the roadmap,” he stated, advocating for a more unified approach to addressing the challenges facing the sector. By working collaboratively, the industry can present a cohesive front that not only influences policy but also enhances the overall effectiveness of pension schemes.
Conclusion: A Call to Action
Jamie Fiveash’s address at the PLSA conference serves as a powerful reminder of the potential for change within the UK pension industry. By moving away from a reactive stance and embracing a proactive, collaborative approach, the industry can not only improve outcomes for its customers but also position itself as a leader in the global pension landscape. As the industry grapples with the complexities of political influence and short-termism, the call to action is clear: it’s time to take responsibility and drive the change that is so desperately needed.
For those interested in further exploring the dynamics of the pension industry, the latest edition of IPE’s magazine offers a wealth of insights and analysis.