DC hot topic – Moving DC funds without member consent
For a PDF version of this hot topic click here.
Trustees sometimes need to move their DC funds without member consent, for example, when:
- one or more of a scheme’s current investment options are no longer available or suitable eg due to the 0.75% charge cap on default arrangements
- trustees decide to change their investment provider or platform
- schemes transfer or merge into a different arrangement, such as a master trust
- trustees wish to consolidate their DC AVC arrangements.
Although this can be worrying if the new investment decision will override a member’s previous investment choice, trustees can minimise the legal risks involved, provided that the right process is followed.
Read the full DC hot topic – Moving DC funds.