The Pensions Regulator (TPR) welcomes the Department of Work and Pensions’ (DWP) consultation on the regulation of master trusts.
TPR has long called for much stricter regulatory controls on master trust schemes and voiced concerns over the current very low barriers to market entry.
The Pensions Schemes Act 2017 gives TPR tough new powers to authorise and de-authorise master trust schemes.
TPR believes that authorised master trusts will be the lynchpin in the development of a sustainable and safe occupational defined contribution (DC) schemes market.
Nicola Parish, Executive Director of Frontline Regulation at TPR, said: “We welcome the publication of the draft regulations for master trust authorisation and I urge trustees and providers to take part in the consultation.
“We have been in active discussions with the industry for more than 12 months and will publish a code of practice for consultation early next year on how authorisation will work and how the criteria should be met.
“Our goal is to ensure those responsible for running and governing master trusts understand the requirements and are ready to apply for authorisation, which is expected from October 2018.”
- Under the Pensions Schemes Act 2017, TPR will be responsible for authorising and supervising master trusts against a number of criteria in areas including systems and processes, financial sustainability and that people running the schemes are fit and proper. Authorisation is expected to start from October 2018.
- TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of TPR’s functions under Part 3 of the Pensions Act 2004 only).