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Authorisation of master trusts

19 June 2017

  • New legislation will cause master trusts to be subject to a detailed authorisation process and ongoing scrutiny by the Pensions Regulator. 
  • Some requirements, including obligations to notify the Regulator of certain events, came into force with immediate effect on 27 April 2017.
  • The new requirements are being brought in to reduce the risks for members of commercial master trusts should their scheme fail.
  • The new provisions will catch non-associated multi-employer (NAME) schemes, including those which provide defined benefits with money purchase additional voluntary contributions (AVCs).
  • The new requirements are not designed with NAME schemes in mind, and some will be difficult for NAME schemes to comply with.
  • The extent of any future carve-out from the requirements for NAME schemes is currently unclear. 

Please click here to read the full briefing note. 

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