10 February 2020
Commenting on the publication of The Pension Regulator's response to its consultation on the Future of Trusteeship and Governance, David Everett, Partner at LCP, said:
“The Regulator’s response to its Future of Trusteeship and Governance consultation is in marked contrast to where many observers might have thought it would end up, especially given the abrasive tone that accompanied its launch last July. But its decision to tread slowly and carefully is the right one. In a number of areas the Regulator is either relying on or intending to work with industry bodies to influence its desired direction of travel. Far better to do this than seek legislative solutions at this stage – such as making it mandatory for trustee boards to appoint a professional trustee.
"Perhaps the greatest surprise is that having huffed and puffed, the Regulator has nothing specific to say about encouraging DC consolidation. But maybe that is because the Department for Work and Pensions is about to issue its response to a separate consultation that will in time give the Regulator some tools to put pressure on underperforming DC schemes to improve or consolidate.”