On the go: The Association of Professional Pension Trustees has set out a code of practice for trustees carrying out sole trustee appointments.
The new code for professional corporate sole trustees, which comes into force on January 1, sets out a rigorous range of governance and risk controls to which sole trustees must adhere, including a requirement that at least two accredited professional trustees must be involved in sole trustees’ decision-making processes.
The code also contains measures to ensure sole trustees assess whether to inform the Pensions Regulator in the event they are removed or resign from an appointment as a result of a sponsor company’s actions.
Developed in collaboration with TPR, the code sets out how accredited professional trustees should hold their companies to account, ensuring they adopt robust governance protocols to manage conflicts of interest when making professional corporate sole trustee appointments, and ensure they remain independent of the sponsoring employer.
Nita Tinn, chair of the APPT, stressed that the new code "will ensure that professional trustees operating as sole trustees do so to the highest standards".
She added: "When administered under our rigorous code of practice, the APPT believes that professional corporate sole trustee appointments will raise standards across the industry, and we urge sponsors appointing sole trustees to make sure that those they appoint are accredited professional trustees and adhere to the code.”
David Fairs, director for regulatory policy, analysis and advice at TPR, welcomed the code, noting that "it's important that schemes with sole trustees continue to have high standards of governance and decision-making".
"The industry code sets out the additional practices and qualities needed of sole trustees, which build on the professional trustee standards," he concluded.
