7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

TPR extends its oversight of professional trustees

On 2 April 2025, TPR announced that it aims to introduce a framework for the oversight of professional trustee firms. TPR is “formally extending” its oversight following evidence gathering with 11 of the biggest professional trustee firms to understand their businesses, the risks and opportunities that arise and any conflict issues.

Simultaneously, TPR published a market oversight report setting out what it has learnt from engaging with professional trustee firms. It identified several potential risks to savers’ outcomes where it plans to focus its engagement including firms’ relationship with the sponsoring employer, their profit and remuneration models and sole trusteeship. TPR’s Market Oversight team intends to establish ongoing supervisory relationships with professional trustee firms from summer 2025 with the intention to cover all firms by the end of the year.

TPR has also confirmed that it is planning on issuing new guidance for trustees later in the spring to help them understand the “array of new models of service provision that are hitting the market”.

PPF launches its three-year strategy

The PPF launched its three-year strategy on 3 April 2025, setting out its key strategic priorities for 2025-2028. While legislative change is ultimately for the Government, the PPF recognises that it is the right time “for a review in a number of key areas of the PPF’s governing legislation.” Its specific goals include:

  • working with the Government to create a framework that provides for zero levy
  • progressing a review of the indexation of compensation, particularly for pre-1997 indexation levels, and
  • liaising with DWP and TPR on the best way to manage schemes unlikely to make it to buy-out, which was recommended in the 2023 pensions review.

TPR urges poorly governed schemes to consider winding-up

On 3 April 2025, TPR announced that it increased its use of powers in relation to non-compliance with the requirement to produce a detailed VfM assessment (for certain schemes). This follows a TPR exercise in 2023 and 2024 examining scheme returns to check compliance. Since launching this initiative, TPR has issued penalties to 19 schemes with total fines of £97,750.

Gaucho Rasmussen, TPR’s Executive Director of Regulatory Compliance, commented that where trustees cannot compete with the “best in the market” in terms of value or governance, they should consider “whether a transfer to a better-value scheme and winding up is what is best for their savers”.

Proposed changes to regulation of asset managers

On 7 April 2025, HMT announced that it is consulting on changes to the rules governing Alternative Investment Fund Managers.  Much of the UK’s asset management regulation is derived from EU legislation, including the alternative investment fund managers directive (“AIFMD”). The Government is proposing to repeal AIFMD’s “firm-facing legislative requirements” and, where appropriate, for the FCA to replace those legal provisions in its rules. The FCA is also considering changes to its existing AIFMD rules.

The consultation is accompanied by an FCA call for input, which seeks to give stakeholders a chance to comment on the proposals before the FCA develops detailed rules and guidance for consultation.

Both the consultation and call for input close on 9 June.

IFoA publishes study on pensions freedoms

The IFoA has published its findings on public attitudes to pension freedoms, ten years after they were first introduced. In comparison to the results from a similar survey in 2022, less people are taking advice or guidance and more respondents indicated that they do not fully understand their retirement options. In addition, more people are taking a lump sum at retirement.

The IFoA remains concerned that many UK households are not saving enough for later life and “remain ill-equipped” to deal with the risk of running out of money in retirement.