The Pensions Regulator has confirmed it has received 38 authorisation applications from master trust providers.This latest update comes as the extension period for applications closes.
This extension was granted to 10 schemes. Of these, eight have filed an application, one scheme no longer meets the definition of a master trust, and another has decided not to apply for authorisation.
TPR head of master trust authorisation and supervision, Kim Brown says: “We now have the final number of applications for existing master trusts and we will be continuing to assess these applications over the coming months.”
It was announced this week that Prudential was winding up its DC master trusts, and transferring members to contract-based schemes.
Six master trusts have already received authorisation. This includesLifeSight — the run by Willis Towers Watson — and Legal & General’s WorkSave Mastertrust (this has two authorisations for its net pay and relief-at-source versions).
The TPR says that authorisation puts safeguards in place to better protect the 14 million savers in these schemes. To ensure that standards continue to be met, authorised schemes will be monitored by TPR as part of supervision.
Brown adds: “Supervision aligns with our new approach to regulating trust-based pension schemes and is an example of how we are working more proactively to tighten our regulatory grip to protect savers.”