Sackers comments on DWP’s draft guidance on trustees’ fiduciary duties

On 5 November 2026, the DWP published draft guidance on “Pension fund investment: Fiduciary and related duties of trustees”, with the consultation running until 28 January 2027.

Commenting on the draft guidance:

Andy Lewis, partner, said: “The key message for trustees is that this is not new law. Fiduciary duty is capable of encompassing a wide range of issues where financially material. In assessing financial materiality, human judgement and narrative can be just as valuable as numbers. The draft guidance aims to explain how the existing fiduciary principles apply to critical current and emerging investment questions that schemes are grappling with today, and that will becoming increasingly important in the future.  Inevitably, there will be a range of perspectives here as the consultation progresses. Some of the issues are potentially emotive. A sensible approach is to consider the draft guidance deliberatively and with an open mind.”

Stuart O’Brien, partner, said: “Importantly, the draft guidance makes clear that trustees are not expected to address every conceivable factor or predict the future. Nor should they or their advisers be judged with hindsight. Within the framework, the guidance is notable for looking beyond individual investments and highlighting systemic risks and opportunities, stewardship and the potential relevance of these considerations to buy-ins, buy-outs and consolidation. There is a lot here for the industry to digest. But trustees should not read the draft as requiring an immediate wholesale revision of existing arrangements. What matters is identifying financially material considerations, taking appropriate advice and following careful and proportionate processes to reach the best overall decisions for members.”