The Pensions Regulator (TPR) gave its response to Trusteeship and in particular the creation of more diverse trustee boards and sole trusteeship in ‘Future of trusteeship and governance February 2020′.
The consultation in July 2019 focused on what could be done to raise standards amongst small pension schemes to protect the interests of savers in them. TPR have announced in February 2020 what key priorities TPR have as a result of their consultation responses:
- Trustee knowledge and understanding (TKU) skills and ongoing learning and development
- To review and update TKU expectations in the code and related guidance
- To revise the Trustee toolkit and identify areas of improvement, subject to budget and resource constraints
- A consultation of changes to TKU code content and update on the Trustee toolkit to reflect the content review in the early part of 2021
- Scheme governance structures for effective decision-making
- To establish and lead an industry working group to develop guidance and practical tools to support schemes in taking steps to improve diversity and inclusion on boards
- Support the Association of Professional Pension Trustees (APPT) in the development of an industry code for sole trusteeship
- Commission further research to identify drivers for seeking, and the risks of, a sole trustee on schemes
- Driving DC scheme consolidation for schemes unable to meet the expected standards of trusteeship and governance
- Continue to monitor DC consolkidation activity and work with industry and Department for Work and Pensions (DWP) to find solutions to overcome barriers to consolidation.
Sole trustee schemes will continue with its current operational model.
“We do not currently propose to make changes to the way we regulate schemes that utilise a sole trusteeship model, although that may change in the future if evidence comes to light that there are fundamental problems which need to be addressed. That means that we will continue to keenly scrutinise schemes that use a sole trustee.” (Future of trusteeship and governance, p17)
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