Pensions - Articles - PLSA survey says a TPR checklist may help tender processes


More than eight in ten (81%) members of the Pensions and Lifetime Savings Association (PLSA) would like The Pensions Regulator (TPR) to produce comprehensive checklist for trustees to use during the tender process for fiduciary management and investment consultancy arrangements.

 The research was carried out as part of the PLSA’s response to the Competition and Markets Authority (CMA) Investment Consultants Market Investigation Provisional Decision Report. 

 In its report, the CMA recommended that pension trustees selecting their first fiduciary manager should have to run a competitive tender and trustees who have already appointed one without doing this must put the role out to tender within five years. The PLSA supports moves to improve the tendering process but believes greater guidance from TPR could be helpful.

 The PLSA’s snapshot research found three quarters (77%) of pension schemes had not run a tendering process for a fiduciary manager in the last five years and over half (55%) had not run a tendering process for an investment consultant in the same period.

 When asked what guidance from the regulator they would find useful in this process, 81% of PLSA members said they would like a checklist. Respondents also said they would appreciate best practice case studies (66%), templates for Request for Proposals documents (60%) and guidance on how to interpret information provided by potential suppliers (60%).

 In addition to the tender guidance, over two-thirds (69%) of those surveyed also suggested that TPR should produce a checklist for what to consider when choosing an investment consultant. In addition, 63% would like a similar checklist on what to consider when deciding upon a fiduciary manager.

 In its response, the PLSA also said that the CMA’s proposals should, overall, have a positive impact on the industry depending on the design and implementation of the suggestions. The PLSA said that it’s important that any remedies remain sufficiently flexible to allow for future market developments.

 Caroline Escott, Policy Lead: Investment & Defined Benefit, PLSA, said: “The CMA’s report is not a one-stop-shop to fix this market, but we believe it came to a number of sensible conclusions and its scrutiny of the sector has been important. With millions of savers reliant on pensions to fund their retirement it’s crucial we have an investment market that works efficiently and transparently at every stage. 

 “To help make that process easier for pension funds, our survey has shown that schemes would like appropriate guidance from the regulator to help them understand and negotiate tendering processes for investment consultants and fiduciary managers. These guides would prove invaluable for schemes and ensure that best practice was being used across the industry to a set standard.” 

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.