SLIDE 1
IAPF Annual Governance Conference 2018
IAPF Annual Governance Conference 2018
- Early 2019
- “effective system of governance”
- “principles of prudential supervision”
IORP’S II
Source: PA - Consideration for Trustees
Master Trusts Coming Full Circle Vincent Boyle Chief Executive - - PowerPoint PPT Presentation
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
SLIDE 2
SLIDE 3
IAPF Annual Governance Conference 2018
Schemes will ▪ Meet the new standards
- r
▪ Look for alternatives
Bridging the Gap
SLIDE 4
IAPF Annual Governance Conference 2018
Master Trusts – A New Concept?
SLIDE 5
IAPF Annual Governance Conference 2018
▪ Year is 1975 ▪ First “modern era” Master Trust is launched ▪ Template for today’s MT’s
Master Trusts
SLIDE 6
IAPF Annual Governance Conference 2018
Master Trusts – An Appropriate Alternative?
SLIDE 7
IAPF Annual Governance Conference 2018
▪ Employers who are not connected ▪ Join a single trust (for DC provision) ▪ Each in ringfenced sections
What is a Master Trust?
SLIDE 8
IAPF Annual Governance Conference 2018
▪ Professional Trusteeship ▪ Compliance Structures ▪ Administration ▪ Investment Strategies ▪ Member services
Master Trust- Components
SLIDE 9
IAPF Annual Governance Conference 2018
▪ Legal responsibility rests with Master Trustees ▪ Master Trustees take on compliance burden
Master Trust – Key Features
SLIDE 10
IAPF Annual Governance Conference 2018
▪ Valuable Client time saved ▪ No employer indemnity ▪ Value for money
Master Trust – Other Features
SLIDE 11
IAPF Annual Governance Conference 2018
What does IORP’s II Mean for Master Trusts ?
SLIDE 12
IAPF Annual Governance Conference 2018
Pension Authority ▪ Fewer schemes ▪ Role of Master Trusts ▪ Consider additional obligations
Master Trusts & IORP’S II
Source: PA – Consultation document July 18
SLIDE 13
IAPF Annual Governance Conference 2018
Trusteeship ▪ DAC – only one MT ▪ Majority Directors independent ▪ Qualifications
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
SLIDE 14
IAPF Annual Governance Conference 2018
Business Plan ▪ Long term viability ▪ Detailed assumptions ▪ Re-submitted every year
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
SLIDE 15
IAPF Annual Governance Conference 2018
Capitalisation ▪ Access to sufficient capital ▪ Sustain for 2 years ▪ Satisfy PA annually
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
SLIDE 16
IAPF Annual Governance Conference 2018
Risk Assessment ▪ Undertake own risk assessment
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
Conflicts of Interest ▪ Best interests of members
SLIDE 17
IAPF Annual Governance Conference 2018
Dealing with Members ▪ Different dynamic ▪ Arrangements in place to communicate
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
SLIDE 18
IAPF Annual Governance Conference 2018
Transparency ▪ Charges
Master Trusts - Additional Obligations
Source: PA – Consultation document July 18
Marketing ▪ Trustee input
SLIDE 19
IAPF Annual Governance Conference 2018
Master Trusts - The UK Experience
Master Trusts
▪ Over 70 MT’s in the market ▪ Grew as a result of auto enrolment
Auto enrolment (AE)
▪ 10m people since 2012 19
New Rules
▪ 30 MT’s will exit market ▪ New rules
SLIDE 20
IAPF Annual Governance Conference 2018