Interviewer: Andrew, the regulator’s published a new DC code for consultation what’s different about the code and why have you published it now?
Andrew Warwick-Thompson: It has to reflect the new legislation, so we have a whole raft of new legislation in relation to the chair’s statement, governance standards, the charge cap, the new flexibilities, so this was the ideal time to produce a new code.
Interviewer: Is it particularly shorter? What comes out? What’s stayed in?
Andrew: We also took the opportunity to have a complete review of how we do codes, we wanted to make it shorter, we wanted to make sure that all of the requirements for trustees of DC schemes were in one place, it also covers things like ABCs, it covers schemes that also have money purchase and defined benefit so everything is in one place, it is shorter, it is clearer it is more concise.
Interviewer: So the new code comes into force next year but until that point which code should trustees adhere to?
Andrew: The current code, so we’ll be consulting on the new code through to the end of January this year, that won’t actually get made into law until July at the earliest, until then the old code remains in force.
Interviewer: And how are you going to support the new code, you’ve talked about stripping it down, presumably there’s less content in there in terms of 'how to' guides are you publishing new guides for trustees?
Andrew: Yes it is important to realise that in order to get the code shorter we’ve condensed it down to the things the law requires trustees to do and where that’s not entirely clear we’ve said the regulator expects you to do certain things. That will mean that for a lot of trustees they will require further 'how to' guidance, we’ll be producing that and consulting on it in April and that will also become relevant as soon as the code is laid and made in July next year.
Interviewer: And finally Andrew what does this mean for members what can they expect from this code?
Andrew: It means there’s a code there that supports all the things the Government wants them to get which is better governance administration, make sure the charge cap applies to their funds so they’re not paying too much in fees but it should also mean that they get better communications from trustees.