22 March 2019

IGC report shows Royal London provides value for money to workplace customers

4 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Corporate PR Specialist – Long Term Savings

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Royal London continues to provide value for money overall to its workplace customers and has delivered on the commitments made in last year’s report according to the fourth report of its Independent Governance Committee (IGC).

This report is the first led by new independent chairman Peter Dorward, the previous chairman Phil Green having handed over in July 2018.

According to the report, Royal London has delivered on its commitments including making changes to the charges on a small number of plans to improve customer value.  The report also highlighted areas for further work.

Peter Dorward, chairman of the IGC, commented:

“Royal London has delivered on the promises it made to us. In particular the work done on workplace customer communications has been a significant step forward.  However, customer expectations move on as does our, and Royal London’s, understanding of what customers value and should rightly expect from their provider.  Responsible investment and how Royal London responds to the needs of customers in vulnerable circumstances will need further attention in the year ahead”. 

Peter continued: “It was also a turbulent year for investment markets which affected the investment performance for the portfolios that the majority of workplace customers invest in. Although we recognise pensions are a long-term investment and can be affected by short term fluctuations, we will be monitoring investment performance closely in the coming year to ensure Royal London’s investment strategy continues to deliver appropriate returns”.

The report also signals that the FCA may wish to widen the scope of IGCs in future, potentially into pensions decumulation.  The FCA has already stated it will require IGCs to report on their firms’ environmental, social and governance (ESG) considerations and stewardship.

Responding to findings of the report, Steve Webb, director of policy Royal London, said:

“We are grateful to the IGC for their continued constructive scrutiny of the quality of our workplace pension offering and pleased to see that they continue to find that we are offering good value for money.    The IGC report confirms that there are now more than a million members of Royal London workplace pension schemes, with the number growing every year.  We recognise that our members are a diverse group of people and we are committed in particular to improving the support that we give to our more vulnerable customers in response to the IGC’s recommendations.  As a mutual organisation, we also take seriously our social impact and we are already putting in place measures to reinforce our reputation as a responsible investor of our members’ money, in line with the IGC’s findings”.

Notes to editors:

The IGC report can be found here

For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings

About Royal London

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £114 billion, 8.8 million policies in force and 3,893 employees. Figures quoted are as at 30 December 2018.

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