Supervision and Enforcement Policy for master trusts - PLSA response
The PLSA has responded to the The Pensions Regulator's consultation Supervision and Enforcement Policy for master trusts. While the draft supervision policy is in a reasonable state, there are some important matters to resolve before the draft becomes finalised. We raised them in the consultation response.
We raised a couple of important points that are closely related to issues raised in the draft policy:
- We remain strong supporters of the new authorisation regime and see it as essential to protecting the 10 million new savers brought into pension saving through automatic enrolment, and look forward to working with DWP and TPR to help make the new regime work in practice and ensure that it fulfils its potential.
- We have a major residual concern about the authorisation process. We expect that a number of master trusts pension schemes will not apply to become authorised and will seek to exit the market. We are concerned that, while there are schemes looking to grow by acquisition, some schemes looking to exit may not reach terms with an acquiring scheme in time.
See the accompanying covering note for our full comment.