For immediate release: Thursday 20 October 2016
Today the Pension Schemes Bill was introduced into the House of Lords which will introduce tighter regulation of the master trust sector.
Commenting on the Bill, Morten Nilsson, NOW: Pensions’ CEO said: “When we entered the market we were shocked at how easy it was to set up a master trust. It was simply a case of sending a form off to HMRC and The Pensions Regulator, nothing more.
Since then, we’ve long campaigned for tighter regulation of master trusts to protect savers. The measures introduced in the Pensions Schemes Bill today are much needed, if long overdue, and we are pleased to see its introduction.
However, one of the main areas of focus has been ensuring providers have sufficient capital. While the Pensions Schemes Bill tackles this to a large extent, which should help drive market consolidation, there are no de minimis capital requirements for providers entering the market which is a grave oversight. Providers should not be able to set up a master trust and accept pension contributions from savers if they have no solid financial foundations.
It is disappointing that the master trust assurance framework won’t be made compulsory as part of the licencing regime. The voluntary assurance framework was introduced as a quality standard to enable trustees of master trusts to demonstrate high standards of scheme governance and administration and making it compulsory and building on this existing framework seemed logical.”
Please find the link to the full Pensions Scheme Bill here
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Notes to editors
NOW: Pensions www.nowpensions.com @nowpensions
NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.
NOW: Pensions was one of the first providers to achieve independent assurance of scheme quality in accordance with the master trust assurance framework (AAF02/07) introduced by The Pensions Regulator in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).