“We welcome the publication of the new guides which put a bit more meat on the bones behind the DC Code of Practice. These aim to give trustees practical tips on how to deal with specific issues.
“Looking at the ‘value for members’ guide, there are some areas that will remain a challenge for trustees, particularly in relation to the ‘value for members’ assessment.
“tPR is calling on large schemes to use information sharing through their consultants and professional trustees as one way of assessing value.
“As part of good governance, we already actively review value on behalf of our clients on a regular basis to ensure that they get the best deal possible for their members. Our overall scale and our strong relationships with providers help to positively influence the outcomes. So we would naturally expect our client base to have more competitive fees than comparable schemes who don’t take regularly test the market. So schemes that don’t have the same level of governance and adviser support and influence will inevitably struggle to achieve the same value for money on fees. Wider industry comparisons still seem a long way off but are critical if value is to be assessed effectively.
“The ‘value for members’ guide also encourages trustees to seek a breakdown of fees in bundled arrangements. Breaking down charges into their component parts remains a significant challenge. It’s difficult to see how this can be easily overcome as this is commercially sensitive information for providers.”
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