On October 22, 2024, the Regulator announced the publication of its digital, data and technology strategy. This is a five-year plan to update its capabilities in these three areas and embrace new ways of working to improve saver outcomes.
The strategy document outlines three aims:
- Reduce unnecessary burden on pension schemes, for instance by capturing data once, and then sharing it between agencies as needed.
- Allow targeting of risk more effectively. The Regulator will use new technology and "best practice" collection methods and standards. A policy of "capture once and reuse" data collection will give "deeper insight and better understanding of scheme risks and investment approaches".
- Enable effective market competition. The Regulator intends to engage with the pensions industry to shape the policy needed. Data use will be aimed at a better understanding of how schemes work. For example, it will use artificial intelligence (AI) tools and data models to analyse risk in scheme investment strategies and examine protecting members' benefits by more effective use of market data to prioritise enforcement and regulatory activity.
The Regulator will be engaging with trustees, pensions professionals and schemes to get their feedback, and will shortly be setting up a working group to further its strategy (for more on this see our report on the October 18, 2024, blog).
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