Interviewer – Kim, TPR has published its code of practice for master trust authorisation and supervision. What’s the purpose of the code and why is it so important?
Kim Brown – That’s right we’ve published our code of practice. The code’s important because it sets out to master trusts how they can demonstrate that they meet the authorisation criteria. It’s a really key milestone in the countdown to authorisation which begins in October this year.
Interviewer – And why is authorisation so important?
Kim – Authorisation is really important in ensuring that only those that meet the criteria operate the market. In 2010 there was 270,000 members in master trusts. Today there’s almost 10 million. It’s really important that we can offer the confidence to those savers that they are in a scheme that has met the required high standard.
Interviewer – And what impact will authorisation have on the master trust market.
Kim – So the whole reason for authorisation is to drive up the standards in the market. That’s likely to result in a reduction in those operating in the market, either because they decide not to apply for authorisation or because they fail to meet the criteria. We have seen some of that to date and it’s really important that we engage with those schemes to ensure that the members are protected when being transferred to an alternative arrangement and the employers have information to continue to meet their automatic enrolment duties.
Interviewer – Kim. Thank you very much.