The Pension Schemes Act 2017 ensures that savers are appropriately protected by increasing the regulation of master trusts. These schemes account for almost 10 million members. The Act seeks to provide members of master trust schemes with a level of protection equivalent to that of members of personal pension schemes.
This consultation is on a new code of practice for master trust schemes. It also covers the related procedure we expect to follow when deciding whether or not to grant authorisation to a master trust. We will separately publish guidance to accompany this code and the authorisation and supervision regime. This consultation also aimed to gain views on what should be included in guidance.
The new code represents a significant departure from previous codes as it outlines a new way of operating for us. For the first time we will be directly authorising and supervising particular pension schemes. The purpose of the new code is therefore to provide master trusts with the clarity they need on how to apply for authorisation and the matters that will be taken into account in deciding whether a master trust should be authorised and remain so.
We were particularly interested to hear from anyone to whom the Pension Schemes Act 2017 applies and those involved with master trusts. This includes trustees, scheme funders, scheme strategists, service providers, employers, professional advisers and members of master trusts.