Some low fellows, they say, said to him--Tom, why don't you make tracks for Canada?' `Ah, master trusted
me, and I couldn't,'--they told me about it.
The authorisation process has "significantly" reduced the number of master trusts
operating in the market, XPS noted, with 44 master trusts
having exited or triggered their exit according to the latest figures published by the Pensions Regulator.
In 2016, the Commons Work and Pensions Committee expressed concern about the development of "potentially unstable" master trusts
, which provide occupational pension schemes for multiple employers who are otherwise unconnected.
The measures in the Pension Schemes Bill follow concerns that some people's savings could be at risk from master trusts
. The Bill will require master trusts
to meet stricter operating rules.
THE GOVERNMENT is set to introduce tougher regulation on auto-enrolment master trusts
in response to industry calls to weed out incompetent or potentially fraudulent providers.
Unlike larger pension providers, master trusts
are not regulated by the FCA but are instead overseen by The Pensions Regulator (TPR), which provides a lower level of supervision, meaning that if they fail, members' money is not expected to be protected.
(5) These plans commonly invest a large share of their assets in various collective investment vehicles, including common trust funds managed by banks, trust companies, or similar institutions, pooled separate accounts sponsored by insurance companies, and master trusts
, which facilitate joint investment of the assets of more than one plan sponsored either by a single employer or by a group of commonly controlled employers.
Those institutions also will be allowed up to five years of additional transition time for transfers of assets to certain securitization master trusts
. That additional transition time applies only if all beneficial interests issued to investors after July 23, 2001, permit the changes in structure necessary to comply with those isolation standards.
separate back-office services for pension funds from investment services for the same funds to create unified trustee accounts for custody, settlement, receipt of interest and dividend payments, foreign exchange risk management and other administrative functions.
"Originally, AcSEC had two proposed SOPs--one covering 401(h) plans and one on investments, covering such issues as what should be disclosed for master trusts
," said Marilee P.
One drawback to master trusts
is that they can be difficult to establish in other countries.
The Pension Schemes Act 2017 introduced the definition of a Master Trust
and the introduction of a robust new authorisation and supervision regime to ensure that Master Trusts
being used for automatic enrolment are safe for the nearly 10 million people now saving in these schemes.