Trustees of Save and Prosper Funds and MC Trustees, a Mattioli Woods company, have been fined in first batch of fines issued to trustees of master trust pension schemes.
Trustees of Save and Prosper Funds were fined a total of £3,020 after failing to prepare a chair’s statement for three master trust schemes, while MC Trustees Ltd has been fined £2,000 for failing to prepare a chair’s statement for the Nurture Master Trust. The maximum fine of £2,000 was imposed because the scheme had a professional trustee in place and there were no mitigating factors.
Trustees are required to confirm that they have completed the chair’s statement via the scheme return.
TPR says the Nurture Master Trust case confirms its general approach to such breaches where there is a professional trustee appointed to the scheme. The Trustee Act 2000 places a higher standard of care on professional trustees who are required to demonstrate a greater level of knowledge and understanding than trustees who are not acting in such a capacity.TPR executive director for frontline regulation Nicola Parish says: “Completion of the chair’s statement by trustees is a basic requirement of good governance and we expect trustees to comply.
“We will enforce the law and impose a penalty where trustees of schemes fail to prepare an annual governance statement signed by the chair of trustees. These requirements apply equally to trustees of master trusts.
“These latest fines result from our ongoing focus on ensuring that trustees comply with the requirements of good governance.
“Trustees should be aware that this type of breach will result in a fine and we hope that our latest report will act as a reminder to all trustees, professional or otherwise, to ensure they complete the chair’s statement fully and on time.”