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The Actuary The magazine of the Institute & Faculty of Actuaries

New standards published for professional pension trustees

All professional pension trustees in the UK will be expected to abide by a new set of standards to demonstrate that they have a higher level of expertise than other trustees.

New standards for professional trustees ©Shutterstock
New standards for professional trustees ©Shutterstock

Published by the Professional Trustee Standards Working Group (PTSWG), the new rules are designed to provide assurance around quality and discourage poor practices.

Trustees will have to pass an initial application to hold accreditation, and confirm they remain fit and proper on an ongoing basis through continuous professional development.

There are additional standards for professional trustees who chair or are the sole trustee on a board.

“I am delighted to announce the publication of the standards and accreditation framework, which follows an extensive period of consultation,” PTSWG chairman, Andrew Bradshaw, said.

“We are now focusing on implementing the accreditation framework. Professional trustees will be able to begin the process once this last step has been finalised.”

To meet the standards, trustees will have to demonstrate fitness and propriety, governance skills, ongoing professional development and competence managing conflicts of interest.

The Association of Professional Pension Trustees Council will be responsible for maintaining the standards and will also oversee the accreditation framework.

However, this will be run by the Pensions Management Institute (PMI), and should be launched later this year.

PMI board member, Alan Whalley, said: “The PMI already supports over 1,000 trustee members by providing lifelong learning to improve knowledge and skills.

“Running the accreditation process is a natural extension of this work promoting excellence in pensions and we are pleased to be able to play a key role in this important initiative.”

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