Master trust authorisation slow to take off

Master trust authorisation slow to take off

Only two master trusts were granted authorisation last month, taking the total authorised thus far to five.

As of yesterday (May 1) The BlueSky Pension Scheme and The Crystal Trust have joined the list of authorised master trusts, according to The Pensions Regulator.

Last month Legal & General WorkSave Mastertrust, Legal & General WorkSave Mastertrust (RAS), and LifeSight were authorised.

There are currently 29 applications which have been submitted for authorisation but a decision on these has yet to be reached. A further five schemes have been given an extension to the March 31 deadline of up to six weeks.

Nine schemes have exited the market, while 35 have notified TPR of a triggering event to exit and will transfer their members to an alternative master trust scheme or other appropriate vehicle.

From October 1, 2018, master trusts had until March 31, 2019 to apply to the TPR for authorisation to demonstrate that they have met required standards.

Under the new rules the number of master trusts operating in the market more than halved from the 90 master trusts that were active back in November.