In their recently published guidance, The Pensions Regulator have allowed a suspension of DB transfers and CETV (Cash Equivalent Transfer Value) quotes for the next 3 months.
The TPR have issued their response to the recent consultation and their next steps are to:
1. Trustee knowledge and understanding: • To review and update TKU expectations in the code and related guidance. • To review the Trustee toolkit and identify areas of improvement, subject to budget and resource constraints. • We plan to consult on changes to TKU code content and provide an update on our Trustee toolkit to refect that content review in the early part of 2021.
2. Scheme governance structures: • To establish and lead an industry working group to develop guidance and practical tools, amongst other things, to support schemes in taking steps to improve diversity and inclusion on boards. • Support the APPT in the development of an industry code for sole trusteeship. • Commission further research to identify drivers for seeking, and the risks of, a sole trustee on schemes.
3. DC consolidation: • We will continue to monitor DC consolidation activity and work with both industry and the DWP to fnd solutions to overcome barriers to consolidation
The Pensions Regulator has confirmed to the SIPP and SSAS trade body, the Association of Member Directed Pension Schemes, that the current consultation and proposed standards for professional trustees do not apply to SSAS’ that are exempt from the Trustee Knowledge and Understanding requirements (i.e. SSAS’ with less than 12 members, that are also the trustees and all investment decisions are made unanimously).
That said, The Pensions Regulator have still kept references to “Micro Schemes” in the consultation paper, so it’s not quite as clear cut as their response suggests and certainly worth preparing for.