Master trusts have taken the bulk of the 7 million new savers drawn into pension saving by automatic enrolment. But the consumer protections offered to members of master trusts can be weak if and when schemes encounter difficulties and low barriers to entry have meant a proliferation of new master trusts, not all of which will be sustainable.
The PLSA called for a new system of master trust regulation and wholeheartedly supports the Pensions Schemes Act that is bringing this new system into being. Already as a result of the Bill passing into law, those saving into master trusts have tougher protections of their rights as consumers. Over the course of 2017 and 2018 we will be working with DWP and TPR to scrutinise the underlying detail of the new system and ensure the new system works for both schemes and savers.