Sharon Bellingham, Senior Consultant at Hymans Robertson comments on the opening of the Master Trust Authorisation window today:

“It’s 1st October and the Master Trust Authorisation six month window is open. Existing Master Trusts now have until 31st March to file their Authorisation applications and those that don’t pass, or decide not to submit, must exit the market.

“Despite the possible uncertainty that the Authorisation application process may bring, it doesn’t appear to have dampened activity and dialogue in the market. It’s even more critical, however, for employers and trustees considering a Master Trust to carefully consider who their most suitable provider partner may be . Getting the right support and advice is paramount; it’s important that the advice is truly independent and without conflict and is backed by a track record of market knowledge, experience and expertise. Those already using a Master Trust should absolutely be asking questions of their provider and getting clear, detailed answers on how the Authorisation submission is faring and timelines for completion.

“Looking ahead, it’s pretty interesting to think about the market might look like twelve months from now - survival of the fittest and most committed, who might ship out ahead of the new authorisation regime and who might try but not make it. It doesn’t take much crystal ball gazing to see that the consolidation already happening will gain pace. It’s absolutely key to ensure that individuals are protected at all times and it’s also important to avoid chaotic market exits which may dilute confidence in the Master Trust brand.  What we’ve seen so far has been controlled and measured, which is exactly how it should be.”