View more on these topics

Govt eyes ‘fit and proper’ rules in master trust clampdown

DWP-Department-for-work-and-pensions-500x320.jpg

The Government is looking at adding a “fit and proper” requirement for trustees of master trusts and new solvency requirements for providers, Money Marketing understands.

The Queen’s Speech last week revealed the Government will table a Pensions Bill including “strict criteria” for master trusts.

Instead of a public consultation the Government is holding three roundtables with the pensions industry.

In the first of these, held on Monday, the Department for Work and Pensions proposed adding the fit and proper rules developed by HMRC to trustee boards.

HMRC introduced the fit and proper requirement for SSAS administrators in September 2014.

In addition, a solvency regime was discussed that could be centred on a risk-based levy administrated by an organisation such as the Pension Protection Fund, or new capital requirements.

About five million people save through master trusts including Nest, The People’s Pension and Now: Pensions.

Rowley Turton director Scott Gallacher says: “At the moment it seems any man and his dog can set up a pension. If you are going to have capital adequacy for Sipp providers and everyone else, logically master trust firms should have to have one too.

“Something must be done about protecting the assets, otherwise it will end badly.”

Recommended

Axa-Logo-500x320.jpg

Axa to sell out of £1.4bn tobacco holdings

Axa has pledged to divest its €1.8bn (£1.4bn) in tobacco investments, saying smoking presents the biggest threat to public health. The insurance and investment firm says it will immediately divest its €200,000 in tobacco stocks, and over a longer period will sell out of its €1.6bn in tobacco industry bond holdings. It will also not initiate any […]

Stockmarket-Stock-Market-FTSE-Performance-700x450.jpg

Investment industry moves to tackle ‘complex and costly’ market

A joint initiative between major investment firms and trade bodies has been launched in an attempt to bring down the cost and boost the efficiency of trading and settling in the UK. The Investment Association, ABI, Tisa, Wealth Management Association, the UK Platform Group is to issue a call for information on how the industry […]

3

Nick Eatock: Advice regulation will kill off the email

It is hard to imagine a world before email, although it was only 20 or so years ago it started to be widely used. Email is a wonderful thing: fast and convenient, as well as useful for providing an instant trail of communication that can be stored and accessed many years later. However, this ease […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I think something got mangled here. The “fit and proper” requirement that was introduced in September 2014:
    – applies to all registered pension schemes already, not just SSAS;
    – is enforced by HMRC not FCA, as it is part of the tax legislation (and SSAS are outside FCA regulation anyway);
    – applies to scheme administrators, not trustees, although they may be the same person in practice.

    Is the article suggesting there will be a beefing up of HMRC’s fit and proper test for scheme administrators, or that there will be an extension of FCA regulation of the “operation” of personal pension schemes so as to catch master trust schemes that are nominally occupational (and thus FCA will apply their own “fit and proper” test to those carrying out controlled functions for master trusts) ?

Leave a comment