On the go: The Pensions Regulator is to publish recommendations on trustee diversity and governance in February, as the watchdog set out its policy commitments for the early months of 2020.
The recommendations will form part of a response to its 2019 consultation on the 'Future of Trusteeship and Governance'. The report suggested wide-ranging reforms, including the possibility that every trustee board could be required to appoint a professional trustee.
Broader considerations around improving the diversity of trustee boards also featured in the consultation, and the regulator restated its desire to see consolidation become an option for those schemes that, whether due to insufficient scale or low-quality governance, cannot provide the best for their members.
A spokesperson for the regulator said: "The response will make several recommendations, including on trustee board diversity. We had 114 responses to the consultation, and initial feedback shows there is clear support for our vision of all savers being in schemes that have excellent standards of governance that deliver good value. There is also support for our desire to consolidate underperforming small and micro DC schemes."
In March, the regulator will issue a new consultation, seeking views on a revised defined benefit funding code.
The code will reflect new legislation brought in by the pension schemes bill, currently making its way through parliament. The bill includes new powers for TPR to take action against negligent employers.
The regulator has been hardening its expectations of DB stakeholders in recent months, announcing a 'comply or explain'-style framework in November, whereby schemes will be able to fast-track their valuation submissions if they fund to prudent valuation bases. Schemes outside of this regime can expect more intense scrutiny from the watchdog.
The spokesperson said the new document "will introduce clearer funding standards, supported by the changes to legislation".
