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.