The authorisation and supervisory regime for master trusts
The authorisation and supervisory regime for master trusts

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • The authorisation and supervisory regime for master trusts
  • The legislative framework
  • The Pension Schemes Act 2017
  • The subordinate regulations
  • The Pensions Regulator’s regulatory framework
  • Code of Practice
  • Forms and guidance
  • Readiness review—lessons learnt
  • Supervision and enforcement policy
  • List of authorised master trusts
  • More...

The authorisation and supervisory regime for master trusts

CORONAVIRUS (COVID-19) UPDATE: In light of the coronavirus pandemic, the Pensions Regulator (TPR) issued guidance stating that, until 30 June 2020, it would not take regulatory action if master trusts delayed filing their accounts with TPR but the delay did not go beyond 30 June 2020. Moreover, while notifications continued to be required for triggering events and significant events, TPR would accept informal reporting to the supervisor in the first instance rather than the existing formal mechanisms.

While TPR took a flexible approach to the late preparation of audited accounts and DC chair’s statements until 30 September 2020, formal reporting resumed from 1 October 2020.

For further information on the pensions implications of coronavirus, see Practice Notes: Coronavirus (COVID-19)—the pensions implications for trustees.

The legislative framework

The Pension Schemes Act 2017

The Pension Schemes Act 2017 (PSA 2017) aims to better protect members of master trusts by increasing the regulation of master trusts and targeting specific areas of risk within the particular master trust structure as compared to other occupational pension schemes (including profit motives, the high number of uninvolved savers and the risks to pension savings should a master trust fail).

In brief, since 1 October 2018:

  1. master trusts must be authorised by the Pensions Regulator in order to operate as a master

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