Master trusts have operated in the UK market for years but by May this year, they needed to seek regulatory approval if they wanted to stay in business. In response, 44 of them decided to quit the market.
We might speculate that perhaps some of these 44 were daunted by The Pensions Regulator’s insistence that master trusts be “open, honest and transparent … and volunteer information about material developments, risks and issues”.
In our report, we speak to three master trusts that decided to stay, even though they know the regime will be tough.
Master trusts that are likely to be successful, we learn, are those that concentrate on engagement with members over contribution levels and investments. Why? Because those two topics are fundamental to the regulatory aim of achieving ‘good outcomes’ – so good outcomes for members are what master trusts will be judged by.
Nick Fitzpatrick, group editor, Funds Europe
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