NAPF urges radical overhaul of workplace pension schemes regulation
16 October 2013
Commenting on the launch today of the ICAEW’s consultation on the draft framework for Master Trusts, Joanne Segars, Chief Executive of the National Association of Pension Funds (NAPF), said:
“The NAPF welcomes The Pension Regulator’s and audit profession's focus on improving the quality of Master Trusts. Master Trusts are a good choice for employers looking for a scheme for auto-enrolment, and the sector is growing rapidly. A well-run Master Trust combines robust and independent trustee governance, offers the scale required to deliver good value investments and administration and has the long-term interests of members at its heart.
“However, currently there are very few barriers to setting up a Master Trust, and there is no guarantee that they are all as well run as they should be.
“The current regulatory landscape is a mess, with different regulators and different standards for different types of schemes. There is a risk that regulating one type of scheme more heavily has unintended consequences and that with weak enforcement powers there is no guarantee that badly-run schemes are forced to improve. What is needed is a more radical overhaul of the regulation of workplace pension schemes with a single regulator, a greater focus on ensuring strong, independent governance and higher barriers to entry."
Ms Segars added:
"The NAPF has launched the Pension Quality Mark READY to help employers identify good Master Trusts, and six schemes have already gained PQM READY status. We would urge any employer thinking of using a Master Trust to look out for the PQM READY logo."
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Contacts:
Dee Sullivan, Head of Media and PR (interim), 020 7601 1717 or 07917 506 683, [email protected]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]