Pensions - Articles - Aegon comment on the TPR Master Trust code for consultation

 “We welcome the eagerly anticipated draft master trust code from The Pension Regulator today. The new code of practice sets out the Regulator’s rules around what exactly is expected to become an authorised master trust, filling in some of the current gaps. With more than half of those who have been automatically enrolled into a workplace pension scheme by their employer saving into a master trust scheme, The Pension Regulator’s master trust code will provide pension savers with further reassurance.

 “The period for submitting a readiness review is only six weeks long starting on 1 May, a matter of weeks away. This is an extremely quick turnaround time for master trusts to prepare their draft applications considering we will only just have received all the requirements. But I expect that most master trusts will use this opportunity to submit draft applications so they can get feedback from the Regulator. This will put them in a stronger position once they do the real thing from October.

 “We expect to see the master trust market consolidate as a result of the extra work and cost implications of adhering to the new regulations and some master trusts are most likely already looking around for buyers. If providers are unable to become an authorised master trust, they simply won’t be able to trade.”

  TPRs Master Trust code of practice