View more on these topics

TPR ratchets up pressure on default investment governance

TPR’s David Fairs

The Pensions Regulator is scrutinising scheme trustees more in a drive to ensure they are meeting their legal obligations and properly governing default arrangements.

The watchdog has contacted trustees of hundreds of schemes and asked them to confirm that they have reviewed their default arrangements.

The move is part of TPR’s ongoing work to protect savers and ensure workplace pensions work.

Under law, a pension scheme which provides money purchase benefits must review its default strategy and the performance of its default arrangement every three years.

A review is also necessary when there is a significant change in a scheme’s investment policy or demographic of its membership.

More than 500 defined contribution schemes with between two and 999 members have been contacted as part of the pilot where trustees have been asked to review guidance which outlines the watchdog’s expectations.

They are then asked to confirm if the strategy and performance of their scheme’s default arrangement have recently been reviewed and remain suitable, by completing a simple online declaration form.

According to watchdog figures, more than 95 per cent of members of trust-based DC schemes are saving in a default arrangement.

TPR executive director of regulatory policy, analysis and advice David Fairs says: “Our focus is on good outcomes for savers in their retirements. To provide pension savers with the best pot for retirement they need good investment returns as they contribute into a pension through their employment.

“Regularly reviewing a pension scheme’s default arrangement, which the majority of savers contribute into, is vital for trustees to ensure they are investing in the best interests of members.”

He adds: “We are working to wake up those trustees who, research has shown us, do not engage with the regulator or sometimes do not realise they are not meeting the standards of governance or administration that we expect.

“This pilot is among some of the things we are doing as part of a new approach to contact trustees about their legal duties, support them to become compliant where we can and inform them about the alternatives – including winding up their scheme – if they do not or cannot meet the standards which we expect.”


Royal London Asset Management

Managing money in retirement

Savers now have more flexibility than ever before in retirement. Of course, this comes with greater responsibility and more scope to make mistakes. Here Royal London look at some of the key considerations when it comes to investing in retirement The price of flexibility Pensions drawdown is becoming an increasingly favoured option amongst retirees, because […]


Pensions minister admits pension forecast errors

Pensions minister Guy Opperman has admitted “significant” problems with a third of a million incorrect state pension forecasts issued in a letter to Royal London policy director Steve Webb. Since 2016, government figures suggest that over 12 million state pension forecasts have been issued and Opperman’s letter suggests that 3 per cent of those may […]

Shades of pink and hairy encounters: The Wellesley Grove Journal

A weekly account of the curious goings-on in the world of financial services Shades of pink When Just Retirement merged with Partnership, market watchers eagerly awaited any steps towards a potential rebrand. In the end, the companies formerly known as the above opted for a streamlined moniker, Just. But what really caught the eye was […]

Spring Statement Houses of Parliament with Abacus

Boris Johnson promises to slash income tax for high earners

Former foreign secretary Boris Johnson has pledged to almost double the threshold at which the 40 per cent tax rate threshold kicks in if he becomes prime minister. As part of his bid to become leader of the Conservative Party, Johnson has told the Telegraph that he intends to raise the higher rate threshold from […]

Tech, low productivity & zombie companies – the outlook for UK equities

Is uncertainty creating a buying opportunity for active managers or is the UK at risk of becoming a zombie nation due to flagging fundamentals? Watch Cherry Reynard, Mark Martin and James Dowey discuss the UK investment landscape today. Watch the video here In this video, the panellists discuss: What the underlying fundamentals are telling us about […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm