Reacting to TPR’s final response on Future of Governance consultation
10 Feb 2020
Commenting on TPR’s final response on Future of Governance consultation, Laura Andrikopoulos, Head of Governance at Hymans Robertson says:
“We welcome TPRs review of Trustee Knowledge and Understanding and particularly the acknowledgement that requirements differ for different types of scheme, such as DB and DC. I’m pleased to see that TPR has not gone for a mandatory qualification or hours-counting requirement for lay trustees, although the 15 hours expectation seems a reasonable guide. The campaign to employers, helping them understand the benefits of the trustee role and how they can support trustee recruitment, will also help to counteract the difficulties many boards are finding in fulfilling trustee positions. Company HR departments often have more success with making trusteeship seem an attractive career development opportunity.
“The industry group on board diversity is welcome and very much needed – the pensions industry has been slow to recognise the empirical evidence that diverse boards are higher performing boards. It is unsurprising that professional trustees will not be mandatory on boards at this time, given the supply issues in the market. We encourage boards to regularly test however, as part of their annual effectiveness assessment, whether a professional trustee is required.”