Commenting on the government response to the public consultation, Troy Clutterbuck Interim CEO of NOW: Pensions said: “We have long campaigned for tighter regulation of master trusts and wholeheartedly support the new regulations being introduced to protect savers.
“While it’s essential that master trusts hold sufficient capital to meet the costs of wind up, I fear there is a risk of over-cooking the capital requirements. Master trusts are far from homogenous and the capital requirements need to be flexible enough to accommodate different providers’ business models.
“It is in nobody’s interest for master trusts to be over-capitalised as tying capital up in this way could stifle providers’ abilities to invest in improvements to member services.
“A comprehensive review of the Fraud Compensation Fund is essential as collectively, auto enrolment master trusts comprise just 3% of the sums at risk of fraud but are paying nearly a quarter of the levy – this cannot be right.”
More information
| Samantha Gould – NOW: Pensions Email: pressoffice@nowpensions.com | Instinctif Partners Email: nowpensions@instinctif.com | Fenella Cuthbert – Cicero/AMO Tel: 0207 947 5327 Fenella.Cuthbert@cicero-group.com |