Sharon Bellingham, senior consultant at Hymans Robertson comments on the closure of the master trust authorisation window and how the industry should respond:

“Not unexpectedly, we’re starting to see more headlines purporting to Master Trust provider consolidation and confirmed market exits. We can expect more in the coming days and weeks now that the Master Trust Authorisation window has closed. And let’s remember that this was always the intended consequence of the new regime and part of the journey towards higher standards and safeguarding member interests.

“We all know that Trustees have a duty to act in line with their fiduciary responsibilities and this is very much centred on the core obligations of protecting members’ best interests. These obligations and responsibilities do not fall away as a consequence of a decision to exit the market. We should also consider that market exits and consolidation activity will be subject to TPR scrutiny and oversight throughout; detailed implementation plans must be agreed ahead of execution and activity will be subject to ongoing monitoring in order to ensure everything remains on the right track.

“This time has potential to be unsettling for members and employers alike and it’s therefore important that the industry avoids scaremongering and suggestions that we’re on the brink of a “pension Armageddon”. Participating employers and members are not being abandoned and they are not expected to navigate their own way through. Equally, they are not shackled to the Trustee default arrangement and are indeed free to make alternative arrangements should they wish. The collective rhetoric should be one that alludes to positive change so to avoid unnecessary concern or diluting confidence in Master Trusts.”