Pensions - Articles - DC code's approach to security of assets is "unrealistic"

 Working Party member, and Partner at Hymans Robertson, Rona Train commented: “The Regulator has suggested that trustees can contact the FSCS directly (even providing a contact number) to discuss the levels of protection in relation to their own schemes. We know from our discussions with the FSCS that they are not geared for this and that they are unlikely to be in a position to give a definitive answer in any case”.

 Barry Parr, Chairman of the Working Party, added: “The position in relation to the protection of assets remains unclear and, for some schemes, the FSCS may provide no protection. Trustees need to carry out a “deep dive” assessment of their structures along with their advisers, to be able to get a clear understanding of how the funds they offer members are structured. Only then will they be able to consider in more detail the possible protections offered to members in the event of a ‘problem’.

 “This also needs to be done on a regular basis, particularly given the current consolidation and sale of platforms that is currently taking place in the industry which could well change the position for schemes which are moved to a new provider.”