Industry research by Mallowstreet has shown that the biggest challenge in the pensions trustee industry is growing regulatory complexity. The popularity of sole trusteeship is increasing as a result, due to the quicker decision-making this can bring, in particular for schemes working towards an endgame or consolidation.
In particular, sole trusteeship is becoming more popular with DB schemes with less than £1bn of assets as more and more of these schemes are closing and sponsors are looking to de-risk via endgame solutions. However, DC schemes are considering the change too – whilst more DC schemes are active, smaller ones will slowly transfer to larger master trusts. Many find that winding up DC schemes is easier with a sole trusteeship model.
Whilst in the past a scheme could have an individual as the ‘solo’ trustee, we are now only seeing appointments where independent trustee services firms act as professional sole trustees, essentially outsourcing the entire trustee board to a team of experts. At ITS, we have a specific governance structure around our sole trusteeships with clear delegated authorities. All material decisions are taken by two Accredited Professional Pension Trustees so that sole trusteeship does not equate to one person.
WANT TO FIND OUT MORE?
For more information on our Professional Corporate Sole Trusteeship service, speak to Akash Rooprai or see our Case Studies.
22.10.20 | News and Views
With the creation of the APPT, and the introduction of the Standards for Professional Trustees of Occupational Schemes and Accreditation through examination, huge steps have been taken to ensure the highest standards of trusteeship across the UK.
08.1.21 | News and Views
Sole Trusteeship is growing and looks set to continue. There are drivers for this, but some are concerned about this development resulting in higher costs, more employer focus than member focus and the potential for trustees to go unchallenged.
27.3.20 | Case Studies
We were approached by the sponsor for a poorly funded scheme with significant legacy issues; they wished to move the trustee board for the pension scheme to a sole trusteeship model in order to improve governance.
If you are a member of one of the pension schemes we act on behalf of as a trustee, or your enquiry relates to one, please contact Eden Maggs.
If you are interested in finding out more about the services we provide, or in joining the ITS team, please contact Ian Terry.
4th Floor, Cannon Place
78 Cannon Street
London
EC4N 6HL
+44 (0) 7901 366 509 (Eden Maggs)
+44 (0) 7788 491 582 (Ian Terry)
