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Master Trusts Coming Full Circle Vincent Boyle Chief Executive - PowerPoint PPT Presentation

Master Trusts Coming Full Circle Vincent Boyle Chief Executive APT Workplace Pensions Limited IAPF Annual Governance Conference 2018 IORPS II Early 2019 effective system of governance principles of prudential


  1. Master Trusts – Coming Full Circle Vincent Boyle Chief Executive APT Workplace Pensions Limited IAPF Annual Governance Conference 2018

  2. IORP’S II • Early 2019 • “effective system of governance” • “principles of prudential supervision” Source: PA - Consideration for Trustees IAPF Annual Governance Conference 2018

  3. Bridging the Gap Schemes will ▪ Meet the new standards or ▪ Look for alternatives IAPF Annual Governance Conference 2018

  4. Master Trusts – A New Concept? IAPF Annual Governance Conference 2018

  5. Master Trusts ▪ Year is 1975 ▪ First “modern era” Master Trust is launched ▪ Template for today’s MT’s IAPF Annual Governance Conference 2018

  6. Master Trusts – An Appropriate Alternative? IAPF Annual Governance Conference 2018

  7. What is a Master Trust? ▪ Employers who are not connected ▪ Join a single trust (for DC provision) ▪ Each in ringfenced sections IAPF Annual Governance Conference 2018

  8. Master Trust- Components ▪ Professional Trusteeship ▪ Compliance Structures ▪ Administration ▪ Investment Strategies ▪ Member services IAPF Annual Governance Conference 2018

  9. Master Trust – Key Features ▪ Legal responsibility rests with Master Trustees ▪ Master Trustees take on compliance burden IAPF Annual Governance Conference 2018

  10. Master Trust – Other Features ▪ Valuable Client time saved ▪ No employer indemnity ▪ Value for money IAPF Annual Governance Conference 2018

  11. What does IORP’s II Mean for Master Trusts ? IAPF Annual Governance Conference 2018

  12. Master Trusts & IORP’S II Pension Authority ▪ Fewer schemes ▪ Role of Master Trusts ▪ Consider additional obligations Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  13. Master Trusts - Additional Obligations Trusteeship ▪ DAC – only one MT ▪ Majority Directors independent ▪ Qualifications Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  14. Master Trusts - Additional Obligations Business Plan ▪ Long term viability ▪ Detailed assumptions ▪ Re-submitted every year Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  15. Master Trusts - Additional Obligations Capitalisation ▪ Access to sufficient capital ▪ Sustain for 2 years ▪ Satisfy PA annually Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  16. Master Trusts - Additional Obligations Risk Assessment ▪ Undertake own risk assessment Conflicts of Interest ▪ Best interests of members Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  17. Master Trusts - Additional Obligations Dealing with Members ▪ Different dynamic ▪ Arrangements in place to communicate Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  18. Master Trusts - Additional Obligations Transparency ▪ Charges Marketing ▪ Trustee input Source: PA – Consultation document July 18 IAPF Annual Governance Conference 2018

  19. Master Trusts - The UK Experience Master Trusts New Rules ▪ Over 70 MT’s in the market ▪ 30 MT’s will exit market ▪ ▪ Grew as a result of auto New rules enrolment Auto enrolment (AE) ▪ 10m people since 2012 19 IAPF Annual Governance Conference 2018

  20. Master Trusts – Coming Full Circle Vincent Boyle Chief Executive APT Workplace Pensions Limited IAPF Annual Governance Conference 2018

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