The government is looking to impose capital adequacy requirements on master trusts through the forthcoming Pensions Bill, PA's sister title Professional Pensions understands.
Auto-enrolment master trust providers will need to ensure they have enough money to cover the costs of transferring to other schemes or winding up without charging members, if the scheme is forced to close. At a meeting on 15 July the Department for Work and Pensions (DWP) reportedly also disclosed that master trusts will need to comply with "fit and proper" governance standards. This means trustees of master trusts will likely have to meet certain qualification standards. Professional Pensions understands the DWP will introduce new requirements into the upcoming Pensions Bill. The...
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