TPR to ‘probe and challenge’ how master trusts’ investments deliver for savers
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The Pensions Regulator will zero in on investments and value at defined contribution master trusts under its new market oversight lead.
TPR previously said it would take a keen interest in the investments of master trusts.
Neil Bull, interim executive director of market oversight, has told master trusts that value will inform everything TPR will do at an event the regulator held for the sector in London.
“Our visits need not be cause for concern but seen instead as a learning opportunity for us both. This will mirror the activity we see in the private sector when master trusts showcase their offer to employers explaining their operations,” Bull said.
Under the new structure, TPR will:
probe and challenge how a master trust’s approach to investments delivers for savers;
investigate how a master trust is seeking the best possible long-term risk-adjusted returns;
look more broadly at master trust investment governance practice and investment decision making; and
request deep dives into the systems and processes of master trusts.
He described the future relationship between master trusts and TPR as a partnership to mitigate harms, identify opportunities for savers and deliver value, calling on them to share their concerns to help TPR understand the bigger picture.
TPR has already held “expert-to-expert conversations”, in which a multi-disciplinary team from TPR engaged with a master trust’s investment and strategy experts and trustees.
