On the go: Willis Towers Watson’s LifeSight is the first master trust to gain authorisation, the Pensions Regulator confirmed on Wednesday.
Master trust authorisation was set up to strengthen protections for almost 14m members in a market with more than £29bn in assets according to latest figures.
Nicola Parish, executive director of frontline regulation at the regulator, said: “The first authorisation of a master trust is a landmark moment and a step towards a market of schemes with better safeguards around them.”
Minister for Pensions and Financial Inclusion Guy Opperman said: “This is an important moment for the pensions industry. Authorisation will ensure master trusts – managing billions of pounds on behalf of millions of members – are strong, safe and deliver for workers.”
Master trusts have to file applications to the regulator outlining how a scheme meets the required standards. Under the legislation, master trusts must have fit and proper people running the scheme, sufficient financial reserves, robust systems and adequate plans in place to get authorisation and operate in the market.
Master trust scheme trustees have until March 31 2019 to apply to TPR for authorisation or begin a process of exiting the market. As at January 31 2019, TPR had received eight applications for authorisation, including Legal & General and Crystal and BlueSky master trusts run by Evolve Pensions.
