Independent professional trustees are increasingly looking to advisers for support on bulk annuity transactions, scheme run-on and pensions regulation, according to new research from First Actuarial.
The consultancy’s inaugural survey of 65 independent professional trustees (IPTs) from 12 firms found risk transfer, scheme run-on, the new funding code and general code, and data and administration quality were the areas where trustees were most likely to seek support in future.
First Actuarial, now owned by Gallagher, says these findings reflected the changing priorities of trustee boards.
Sam Mullock, partner at First Actuarial, says: “We see from the survey that IPTs are looking for advisers to help them navigate risk transfers. The market has recently opened up to smaller schemes following a period in which few insurers provided quotations.”
He adds that data quality and administration have become an increasing focus for schemes, with some schemes struggling to manage business as usually while tackling issues such as member data quality , procuring suitable systems and recruiting administrators with relevant experience.
The survey also found trustees continue to value strong adviser relationships When asked what qualities were important in building these partnerships, trustee stated openness, honesty and trust, genuine collaboration, dependability, clear advice and proactive communication.
Meanwhile, almost two-thirds (62 per cent) of respondents said they preferred engaging with advisers through live online training sessions and webinars, rather than in-person events, reflecting the pressures on trustees’ time.
Mullock adds that independent professional trustees’ experience of working with multiple advisers across different schemes meant they were well placed to judge the quality of advice. “IPTs play an important role in the pensions world. They know what a good adviser looks like and what reasonable costs are,” he adds.
