The FCA has published a modification to its rules that govern how firms must connect their data to the Pensions Dashboards service.

The modification has been welcomed by the Association of British Insurers which said it gave firms more "flexibility" to comply with rules.

The FCA said the modification is aimed at making the dashboard more flexible, leading to a faster and smoother overall connection to the service.

The regulator said before the modification, firms may have been deterred from connecting because of a requirement to comply with a number of obligations by the ‘connect by’ dates in the Department for Work and Pensions connection guidance published in March.

It said the modification by consent will enable firms to connect to the Money and Pensions Service pensions dashboard digital architecture before 31 October 2026, in line with the DWP connect guidance.

In an update, the FCA explained: “The unmodified rules under COBS TP 2.38R & COBS TP 2.38BR state that if a firm completes connection to the MaPS Pensions Dashboards digital architecture before 31 October 2026, that firm must comply with all the obligations under COBS 19.11.”

It said it acknowledged that the unmodified rules may deter firms from connecting by the DWP guidance ‘connect by’ dates of April 2025 and January 2026 where they are unable to comply with COBS 19.11 for 100% of their relevant pension scheme members.

The FCA said: “Through this modification, a firm can ensure compliance with COBS 19.11 where they connect before 31st October 2026 (in line with the ‘connect by’ dates) but are unable to comply with COBS 19.11, for 100% of its relevant pension scheme members’ data.”

Emily Mae Collins, long-term savings policy adviser at the Association of British Insurers, said: "This is something that we have long called for, and it is another welcome step to ensure the smooth launch of Pensions Dashboards.

“It will accelerate the industry's efforts to launching this revolutionary service, by allowing firms to connect the bulk of their data, while allowing for a limited extra time for the upload of any small pockets of more complex business.

“Having this modification of consent creates the flexibility for schemes to work with the government and regulators to enable a faster connection for firms."

Connections are due to start in April 2025, giving the first schemes to connect more than a year to ensure they're ready ahead of the October 2026 deadline.

All 3,000 schemes will be legally required to be connected to the dashboard system by 31 October 2026 at the latest.

Last month the FCA opened a consultation into new guidance to be added to its Perimeter Guidance Manual (PERG). 

The FCA recommended that all firms who provide pensions and retirement planning services read the suggested changes to the PERG.

The FCA has called for feedback to its new consultation by 8 May, with the new updated Manual expected to be published towards the end of this year. 

The consultation can be found on the FCA website