The Pensions Regulator in the U.K. is seeking industry input on a new code of practice for master trust authorization, TPR said Tuesday.
Following the U.K. government's opinion published last week, beginning Oct. 1, master trusts — U.K. multiemployer plans — will have to be authorized by TPR to continue to operate in the U.K. The regulator is consulting the industry on a draft of the code before it sets final rules under which existing master trusts will be governed in the £16 billion ($22 billion) retirement savings market.
"We are being clear about our expectations of master trusts and will not authorize (plans) which fail to meet the necessary standards, both in applications for authorization and during supervision," said Anthony Raymond, acting director of regulatory policy at The Pensions Regulator, in a news release. "If an existing master trust chooses not to apply for authorization or does not meet the authorization criteria, it will have to wind up and exit the market."
The consultation period will run until May 8. Existing master trusts will have six months to apply to TPR for authorization.