Pensions Pieces — February 2014: Regulator/ICAEW publish draft framework for master trusts for consultation - .PDF file.
As a result of the automatic enrolment obligations, defined-contribution master trusts (trust-based pension schemes for employers that are not connected with one another) are appearing in growing numbers to meet the increasing demand for defined-contribution pension provision.
One of the major concerns for an employer choosing a master trust is whether that trust will provide the appropriate level of governance. As the employer is not establishing the trust itself, it cannot control the form that governance takes, and it is therefore very valuable to be able to assess and compare the governance standards of different master trusts.
In order to help employers better understand the governance and administration arrangements of the master trusts on offer, the Pensions Regulator and the Institute of Chartered Accountants in England and Wales (ICEAW) have jointly developed a draft reporting framework for them. The idea is that the trustees of the master trust would produce a report following a standard framework, which would be accompanied by an independent assurance report from a chartered accountant to provide an element of independent verification…
Click on the link below to read the rest of the Taylor Wessing briefing.