Sackers welcomes master trust regulations, but says clarity is required around mixed benefits
Sackers has broadly welcomed the proposed regulations around master trusts and believes trustees should begin to consider their impact now.
Helen Ball, Head of DC and Partner at Sackers, commented: “We welcome the draft regulations that will bring to life the new authorisation and supervision regime for master trusts and should help schemes to start planning for the changes ahead. However, it would be helpful to see the further details expected in the draft code of practice, which has been promised for the spring, sooner rather than later. These could help with key decision making.
“As the exemptions within the regulations are quite narrowly drawn, trustees of DB schemes that accept AVCs and/or transfers-in of DC benefits from deferred members will need to check the details of the final regulations to see if their scheme falls within the scope of the new requirements. If the regulations remain as currently drafted, some trustees could be surprised by the result, as the exemptions would only apply to active members.”
Ball added: “With just over a year until the intended implementation of the new regime, time is of the essence. It is therefore important to clarify the scope of the new requirements and their application to existing schemes.
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