A new law comes into force to drive up standards in master trust pension schemes used by millions of people to save for retirement. Every new and existing master trust will now have to apply to TPR for authorisation to show they meet the new standards in the UK.
Under the legislation, master trusts must have fit and proper people, sufficient financial reserves, robust systems and adequate plans in place to get authorisation and operate in the market.
TPR will then supervise schemes to ensure they continue to meet their legal duties. It has published the revised supervision and enforcement policy, updated after consultation.
Existing master trust schemes now have six months to file an application to TPR for authorisation to continue to operate in the market, while new master trusts must be authorised before they open for business.
To ensure master trusts are ready to apply for authorisation, TPR has been in close discussions with providers. It has published a code and guidance with the support of the industry and ran a voluntary readiness review programme which gave schemes an opportunity to provide a draft application to TPR and receive detailed feedback.
New figures released today show that, so far, 30 master trusts have exited or are exiting the market, leaving 58 which will either need to apply for authorisation or exit in the coming months.
Press release
Supervision and enforcement policy
© The Pensions Regulator
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