TPR’s new CEO Nausicaa Delfas identifies targets for reform
In a speech, TPR’s newly appointed CEO, Nausicaa Delfas, called for a joint effort to meet a new ‘pensions challenge’ to ensure the system delivers value right the way through the saving journey, and not simply focus on costs.
“Today I am making a call for action — we need to work together to make the system the best it can be for savers.
“We need to do this so that pensions deliver a pot that enables savers to have confidence, empowerment and security in later life. We need to do this to support savers when they come to use their money.
“And we need to do this to make the process of decumulation clearer and more accessible, and to ensure we protect savers from scams, poor advice, and lost value.”
Fundamental shift
Delfas focused on value for money and complained that a “lack of innovation and fluidity in the market” is leading to significant investment risks in a market which needs to adapt.
She said the industry needs to change its mindset and abandon its short term focus on cost to deliver real, long-term, holistic value for savers.
The new joint framework currently being developed by the Department for Work and Pensions, Financial Conduct Authority and TPR “will increase transparency and competition in the market and drive up standards across the board,” said Delfas.
She added: “We need to make genuine changes to the system, not merely adjust some minor points. We need fundamental shifts in thinking and delivery.”
Same warning, but with feeling
TPR will challenge trustees of schemes it feels consolidation would offer members better value for money.
“Where we find poor performance, the message is clear: wind up and put your members into a better run scheme. Or we will consider all powers at our disposal.”
And she was unapologetic about demanding high standards of administration and governance and to address equality, diversity and inclusion and environmental social governance issues.
Delfas said: “Savers deserve more than minimum standards — we are unapologetic about the standards we expect from trustees — savers would expect the people looking after what is for many their entire retirement savings to be appropriately skilled and qualified.”
This would include extending the reach of professional trustees, as TPR “fundamentally” believes “that every trustee body should include someone who meets professional standards”.
