Master Trust TECH 05/20 AAF and the Master Trust Supervisory Return
Master Trusts continue to grow as a ‘product of choice’ for employers meeting their automatic enrolment duties, there is now a legal requirement for all Master Trusts to be authorised with the Regulator undertaking ongoing supervision and oversight.
Master Trust Technical Release has been produced with the assistance of a working group established by ICAEW’s Audit and Assurance Faculty. TECH 05/20 AAF replaces TECH 12/16 AAF (Master Trust Supplement to TECH 02/07 AAF), the TECH 05/20 AAF is a stand alone Technical Release and is not a supplement to TECH 02/07 AAF.
The Technical Release aligns the control objectives set out with regulatory expectations for Master Trusts to support the supervisory regime reporting process to the Regulator. Even though the adoption of this Technical Release and the Master Trust assurance framework is of great value it remains voluntary.
The new TECH 05/20 AAF has 32 control objectives under 8 control areas:
- Value for members
- Investment governance
- The trustee board
- Financial sustainability and compliance
- Scheme management skills
- Trustee oversight of IT systems and administration processes
- Data quality
- Communication and reporting
These TECH 05/20 AAF control areas map into the Master Trust Supervisory Return ‘System and process, Trustee oversight’ question, with the Regulator stating that a Master Trust’s response may rely on the TECH 05/20 AAF.
If you would like further information on the new TECH 05/20 AAF and how this maps into the Master Trust Supervisory Return questions please contact Gareth.Burton@assureuk.co.uk or Bhavesh.Patel@assureuk.co.uk