TPR oversight of trustees long overdue, but clear guidance on ethics needed

Commenting on the announcement that The Pensions Regulator (TPR) will increase its oversight of professional trustees, Partner and Head of Pensions at RSM UK, Ian Bell said: “This is welcome news, and long overdue. The professional trustee market has developed rapidly in recent years, with growth and consolidation encouraged by investors, which are often private equity firms. 

“This trend, however, has changed the market, as there are now fewer, larger providers which manage larger funds and reduce competition. The fundamental role of the trustee has, however, not changed and the clue is in the title, it is one of trust. This means trust in taking decisions for the benefit of scheme members with no risk of self-interest for themselves or their organisations. 

“As part of this review, I would expect TPR to present trustees with clearer ethical guidelines, which may be similar to those that we have in the audit profession, designed to ensure that independence is always considered as part of any services provided. This is essential to ensure that trust is preserved as an increasingly key aspect of the pensions industry.”