On the go: Professional trustees will soon have to pass an initial application process to hold accreditation, and will have to demonstrate that they meet a new set of standards published today by the industry-led Professional Trustee Standards Working Group.
The standards are designed to improve the quality of professional trustees and discourage poor practices in the market.
Professional trustees will have to show they meet these standards, including governance skills, managing conflicts of interest, fitness and propriety and ongoing professional development.
A new accreditation process, which involves initial qualification and annual renewal, is intended to provide a level of assurance to those appointing professional trustees that they have technical pensions knowledge and a high level of fitness and propriety.
They must also demonstrate appropriate behavioural attributes and soft skills enabling them to operate as a chair or other member of a trustee board. The standards apply to professional trustees on an individual basis.
The publication of the standards follows an extensive period of consultation.
Andrew Bradshaw, chairman of the PTSWG, Association of Professional Pension Trustees council member and Ross Trustees director, said: “The input from people who responded to the consultation has been invaluable in shaping this final version of the standards, as has the commitment and hard work from all of the working group members.”
He added that the PTSWG is now focusing on implementing the accreditation framework.
“Professional trustees will be able to begin the process to becoming an accredited trustee once this last step has been finalised,” he said.
The framework is expected to be launched later this year. The APPT council will oversee the accreditation framework, which will be run by the Pensions Management Institute. The council will also take on responsibility for maintaining the standards.
David Fairs, executive director for regulatory policy, analysis and advice at the Pensions Regulator, said: “This robust accreditation framework will help to ensure that professional trustee appointments are high quality and meet the standards that TPR expects.”
