Trust based schemes are subject to significant governance requirements. The Pensions Regulator (tPR) is indicating that contract based schemes (e.g. GPP, SIPPs and Stakeholders) will be subject to similar regulations in the near future. This is in addition to the Financial Services Authority (FSA)’s existing controls.  

Whether trust or contract based arrangements are used, employers generally operate some form of governance to support members in their pensions planning. However, such activities have significant implications which many employers do not appreciate.  

By supporting members, perhaps by bespoking communications or providing help with investments (e.g. restricting a range of several hundred funds down to a more manageable range of perhaps six) they are providing members with regulated financial advice. A similar issue occurs where a default investment option is selected (auto-enrolment will necessitate such selection and regular review).  

Xafinity can help employers who have, or may be considering introducing a DC arrangement to carefully consider the implications that it brings. We support employers to correctly structure their governance committees / trustee boards and assist these bodies to carefully monitor their activities to avoid potential action by the FSA or tPR.  

Xafinity can assist with the implementation of cost effective, and above all, legally compliant solutions that balance the desire of minimising unnecessary expense, whilst providing members with high levels of support.