Pensions Regulator: Our expectations of DC trustees
Talking Head: After a period of intense change, we are going further to help trustees and scheme managers adapt to the new pensions landscape, and understand the challenges they are facing.
Just as the industry has had to adapt, we are also publishing new guidance and taking a bolder approach to the language we use when communicating with the regulated community.
Last month we published our revised defined contribution code of practice for consultation. The new code is shorter and simpler, and sets out the standards of conduct and practice we expect from trustee boards to meet their legal duties and deliver better long-term outcomes for retirement savers.
By setting out what we expect, we are being transparent about the behaviours and activities we want from trustees in order to mitigate the risks to their members
I urge people to take part in the consultation, which will run until the end of January. The more people that engage with us during this consultation period, the better the final version of the code will be when it is laid before parliament in May.
By setting out what we expect, we are being transparent about the behaviours and activities we want from trustees in order to mitigate the risks to their members.
Trust law
What trustees will see in the code and in our accompanying guidance is not only all the legal requirements, but also a set of extra guidelines that reflect the underlying philosophy of trust law.
Trust law has always informed what a good, effective trustee should be doing, and it is fundamental to trustees’ responsibilities.
We expect not only compliance with the law, but also that trustees will pay attention to these extra considerations: to consider what else they can be doing, beyond the scope of the basic legal requirements, to improve their members’ situation and drive good outcomes.
I’m confident that this clearer approach will be welcomed by our regulated community. Earlier this month we held a small event with a number of our key stakeholders, some of whom were trustees, and the message from them was unmistakeable: 'Tell us clearly what you expect us to do. Be bold. Speak with authority.'
It is messages like this, directly from the mouths of our stakeholders, that have encouraged us to be bold and strong.
We know we can effect change and raise standards in this industry through speaking out and setting expectations. And that’s what we will do.
Lesley Titcomb is chief executive at the Pensions Regulator