On 24th November, The Pension Regulator published a draft revised code of practice for consultation to help trustees and their advisers raise standards of governance and administration.
According to The Pensions Regulator ‘The new draft DC code sets out the standards of conduct and practice the regulator expects trustee boards to meet in complying with their legal duties, and to deliver better long term outcomes for retirement savers.
To view a copy of the draft consultation visit The Pension Regulator website.
The consultation focuses on the following key areas:
- The trustee board – including appointing a chair of trustees, member-nominated trustees and master trusts.
- Scheme management skills – such as managing risk, trustee knowledge and understanding, conflicts of interest and working with advisers, service providers and the employer.
- Administration – including core financial transactions and record-keeping.
- Investment governance – including documenting investment matters, monitoring and reviewing investment strategies and security and liquidity of assets.
- Value for members – such as restrictions on costs and charges and the ‘adjustment measure’.
- Communicating and reporting – for example at-retirement communications, scams, the annual chair’s statement, reporting to the regulator and the statement of investment principles.
Steve Cook, Director & Financial Adviser at Lonsdale Services, St Albans said: ‘Given the pension changes and reforms that have recently been introduced we welcome the introduction of a new DC code as it will help trustees to adapt to the new rules and regulations for the benefit of their scheme members. If the consultation runs on time the new DC code will become law in July 2016, but until then the 2013 code will still apply. ‘
Steve Cook is a Financial Adviser at Lonsdale Benefit Consultants. Lonsdale Benefit Consultants provide a high quality professional financial planning service for companies looking to offer employee benefit solutions for their staff. We offer you a clearly defined service proposition and a transparent fee structure. For further information call one of our Financial Advisers on 01727 845500 or email us at firstname.lastname@example.org