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Simply meeting people’s financial needs

Contact our press team

Eloise Henderson
Head of Strategic Communications
T: 01293 205335
M: 07741 384460

Blaise Tapp
Media Relations Manager
T: 01293 205336
M: 07388 943700

Responding to the Draft Occupational Pension Schemes (Master Trusts) Regulations 2018, Darren Philp, director of policy at The People’s Pension, said:

“Today’s draft regulations are an important milestone in achieving proper regulation and authorisation of master trusts to ensure members are appropriately protected. We welcome the consultative approach being taken by the DWP and TPR, and look forward to seeing how the regulator will implement some of the detail in their code of practice.

“Early sight of a draft code will be important for providers, as the new regime comes into effect from October next year and the industry has been invited to let the regulator see early versions of their applications for authorisation.

“One point of detail in the draft regulations that needs more thought are the different fixed caps for the cost of an application, depending on whether the applicant is an established master trust or a new one. The regulation states that the principle for charging is cost-recovery. If this is the case then why do we need two different caps, since there is nothing to stop the regulator charging a new entrant the actual costs of authorisation? 

“We would argue that the same rigour and assessment needs to be in place on existing and new master trusts. We might also expect initial supervisory costs of new master trusts to be higher as they should be required to demonstrate to the regulator that they are implementing systems that actually work. From a political perspective, it would be an own goal if a lower bar for review were set for new entrants, as the political impetus behind the Pension Schemes Act was driven by the entrance of low quality, under-capitalised and potentially fraudulent schemes.”

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The People’s Pension is the largest private sector master trust (multi-employer pension scheme) in the UK, with 3 million members and over 72,000 employers signed up. Run by B&CE, a not for profit company, it offers a simple and low cost automatic enrolment workplace pension solution for employers of any size from any sector. We tweet as @peoplespension.