The latest instalment of the online ‘ Trustee Toolkit' covering strategic investment has been released by the Pensions Regulator.
Aimed at trustees of both defined benefit (DB) and defined contribution (DC) schemes, the new module completes the e-learning programme’s section on investment and follows the module on fund management which was released at the end of January.
The module is designed to help users understand the advice they may receive on strategic investment and to assess whether the solutions offered are appropriate for their scheme, by considering factors such as:
- Size and maturity of the scheme,
- Strength of the employer covenant,
- Attitude of the employer,
- Trustees’ appetite for risk
In addition, the latest instalment of the free online initiative introduces trustees to the ideas of diversification, risk modelling, alternative asset classes and interest rate swaps, and it concludes with the development of a statement of investment principles (SIP).
However the Pensions Regulator points out the new module is aimed primarily at trustees of schemes with more than 100 members, as it says this section is “not part of the required learning path of trustees with schemes of less than 100 members as they are exempt from the requirement under the Pensions Act of producing a SIP”.
And the module, which helps trustees meet the Trustee Knowledge and Understanding (TKU) requirements of the Pensions Act 2004, will give users the opportunity to work through scenarios and make decisions similar to those they will face in their own schemes, resulting in the ability to make informed decisions about investment strategy, and objectively assess proposals made to them.
The syllabus of the ‘Trustee Toolkit’ is based on the ‘scope guidance’ issued by the Regulator and also forms the basis of a new voluntary qualification for trustees launched by the Pensions Management Institute (PMI), which will replace the current Trustee Certificate.
Terry Clayworth, regulated community learning manager, says: “The interactive aspects of this module should help provide an original and enjoyable learning experience for trustees looking to find out more about strategic investment.”
“The feedback we’ve received on other modules so far has been extremely positive - we’re hoping trustees will find this next module just as useful.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
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