The report also shows that of the 226 new PT appointments since April 2024, over half went to 4 firms. While concentration remains a key feature, new voices are starting to make themselves heard. With two new entrants to the market in the past year and several mid-sized firms increasing their share of new appointments there is slow but steady diversification.
The report also highlights that the maturing market means that the ‘hiring frenzy’ has slowed and that there is more focus on hiring people with the right skillset as the market matures. Hiring is now more likely to be strategic rather than expansive, focused on succession planning, operational depth, business development or securing niche expertise. In an increasingly competitive landscape, firms are investing in leadership development and internal governance frameworks instead of simply adding headcount.
The report takes a closer look at where new appointments over the past year have come from with the majority of growth coming from schemes that previously had no Professional Trustee involvement until now, represented by 63%. That means that over 140 schemes have appointed a Professional Co-Trustee/PCST for the first time.
Other key findings in the report are:
• The market has seen the slowest growth in 5 years in the number of appointments to professional trustees this year
• 30% of new appointments went straight to a Sole Trustee arrangement
• Looking ahead to 2026, the rise of consolidation is cited as a key trend for the next five years by the majority of respondents. This reflects the strategic focus of the Pensions Regulator (TPR) and the Government’s push to facilitate the growth agenda through scale via consolidation
• The report also analyses whether there is a right length of time for an appointment and/or maximum number of appointments. The analysis shows that the majority of PTs hold between 6-14 appointments with some strong outliers on both sides.
Nausicaa Delfas, Chief Executive of The Pensions Regulator commented: “We know that professional trusteeship has experienced huge growth over the last few years, and we welcome the valuable insight and perspectives provided by this and other surveys. The Pension Schemes Bill is set to radically reform the market and there is now a real opportunity to make sure good governance runs through the system. To protect savers we have already extended our market oversight approach to the largest professional trustee firms. We expect professional trustee appointments to have followed a robust process, as trusteeship moves towards adhering to more conventional corporate governance standards"
Nathalie Sims, Partner & Head of Strategic Pensions Relationships, LCP, commented: “We are now seeing a maturing market, with the hiring frenzy having slowed and being replaced by a more strategic approach to recruitment. Our report shows a dynamic market that’s responding to regulatory change. As professional trustees take on more schemes and larger mandates, the Regulator’s lens has sharpened — and questions around governance, independence and performance are now front and centre. Growth in the market hasn’t stopped, but it’s changing. Consolidation and new regulation means the next phase of the PT journey may look very different from the last.”
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