Sacker & Partners LLP has responded to the Review of the Trustee Knowledge and Understanding code of practice and scope guidance published by the Pensions Regulator on 13 October 2008. The consultation closed on 31 December 2008.
The aim of the consultation document is to update the existing code of practice and accompanying scope guidance on trustee knowledge and understanding (TKU), to reflect changes in regulations, legislation, the market place and the focus of the Regulator.
Fiona Franklin, partner, comments: “The Regulator’s initiatives to help trustees meet their TKU requirements under the Pensions Act 2004, by means of the code of practice and scope guidance, have our full support. Clearly it is right that these should be updated to reflect changes in legislation and practice.
However, it is important to guard against too much detail, which may lead trustees to believe that the Regulator’s lists of TKU requirements are exhaustive. This could lead to a box-ticking approach, when in fact the central need is to guide trustees to understand where the risks lie for their own schemes, and how to manage those risks appropriately. So it is vital that trustees understand the importance of tailoring the TKU requirements to the specific circumstances of their own schemes.”
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