There are a number of mentions of schemes operating at sub-scale, and it is easy to conclude that we will likely see further consolidation of trust-based schemes – including master trusts – as a result.
We see this trend in many other countries, where the initial market clamour is followed by a slow reduction in providers in the pursuit of scale to deal with the costs of ever-increasing compliance.
Finally, it is encouraging to see that environmental, social and governance features as a future theme. I suspect it is more than that.
With long-term investment capital increasingly tied up in pensions, the potential to make a difference will only increase. And of course there are also ethical considerations, and sustainability, and many other words that people have used in this arena. They all have merit, and the whole subject is gaining momentum, deservedly so.
All in all, this is a very welcome paper. Rarely can we take a step back and think strategically. Even more rarely can this be done inclusively and collaboratively. I think the FCA and TPR have managed that here. So far, so good.
Jamie Jenkins is head of global savings policy at Standard Life
