The Dutch Authority for the Financial Markets has published a report, “Choice guidance starts with the participant”, setting out findings and good practices to help pension providers design adequate choice guidance so participants can make appropriate choices. The report is based on exploratory research conducted in 2024 and is intended to be used by all pension providers, including when preparing for the introduction of the lump-sum withdrawal option, alongside the AFM’s 2023 guidance on the choice guidance standard that has been incorporated into the Pension Act. The report emphasises that effective choice guidance should start from a strong understanding of participants’ needs, characteristics and skills, so providers can calibrate the amount and level of detail of information and decide on suitable channels such as personal contact or online tools. It also highlights the need to communicate the consequences of choices in a timely and appropriate way, with specific attention to consequences during the pension transition, including how choices can affect any compensation and post-transition outcomes such as changed survivor benefits. On advice, the AFM clarifies that pension providers may advise participants on choices within the pension scheme and may gather information about their broader financial situation, and are obliged to advise where there is investment freedom, while “Wft advice” recommending a specific financial product from a specific provider is not permitted for pension funds and is only permitted for pension insurers if the requirements under the Financial Supervision Act are met.

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