Personal Pension  

Looming spectre of master trust ’zombie’ schemes

Graham Peacock, managing director at the Salvus Master Trust said some consolidation has already happened in the market, saying it has merged its trust for advisers with Spinnaker.

“We’ve been approached by three different master trusts already. They say they don’t think they are going to make it through the next three to six months, ‘could we merge?’ – but we are not interested in a merger with someone who can’t make it for the next six months.”

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A spokesperson for the Pensions Regulator said: “In the event a master trust was forced to close, we would work with the pension scheme to ensure an orderly and timely transition to another scheme was carried out to protect members’ savings and employers using the scheme to meet their duties under automatic enrolment legislation.

“However, we believe that it would be preferable if unsustainable or poorly governed master trusts were not able to open for business in the first place.”

ruth.gillbe@ft.com