The Pensions Regulator (TPR) is planning to use AI for supporting its decision making and set up a regulatory sandbox as part of a new digital, data and technology strategy.
It is also planning to set up an industry working group to develop further detail, including a focus on data and common standards.
TPR has published the strategy declaring that the main aims are to reduce unnecessary burden on pension schemes, enable effective market competition and support innovation in the sector.
Paul Neville, executive director of digital, data and technology (DDaT) at TPR, said: "Pensions are evolving rapidly. TPR is unlocking the transformative power of digital, data and technology to deliver a regulatory approach which delivers better outcomes for savers.
"Now, we are challenging the pensions industry to do the same. We aim to work with industry to design our approach which protects savers and drives innovation, competition and transparency."
Eight missions
The strategy includes eight missions, one being to make sustainable decisions supported by AI. This will involve the use of new tools to analyse trends and predict risks, augmenting regulatory activity and strengthening the protection of savers’ money with more market data for horizon scanning and risk assessments.
Another is to incubate experimentation with the establishment of a regulatory sandbox, new engagement approaches and pathways. This is intended to enable testing of new pension products and services, including those focused on sustainability, without the immediate pressure of full scale regulatory compliance.
“We want to create an environment where industry players can safely test new business models and technologies,” the document says. “We will engage you in shaping the policy needed for experimentation and forward thinking regulations in a disrupted pensions sector.”
This will be accompanied by the development of a framework for ethical technology and data use for all pension providers, and supporting the development of integrated solutions using standardised data structures and taxonomies.
Building a team
There are also missions to build a high performing DDaT team with new ways of working, and to ensure everyone at TPR uses the same set of design, technology and data rules and building blocks.
The other missions are to: use the right tools for the right jobs; enable TPR colleagues to be more productive; enhance regulatory effectiveness and transparency; and be a global leader in pensions regulation. Efforts in the use of DDaT will contribute to all of these.
Among the existing plans is to deliver the Submit a Scheme Valuation digital service, designed to help TPR collect data to identify and tackle the risks of pension schemes.
