The Pensions Regulator (TPR) has shared the early findings from its pilot initiative on value for member requirements, revealing that a number of schemes have opted to wind up as a result of the regulator's action.

TPR previously launched a regulatory initiative to check if defined contribution (DC) savers were benefitting from new rules that require trustees to assess whether they are delivering value for their members.

In particular, TPR was looking to confirm whether trustees of DC schemes with assets under management of less than £100m are complying with new value for member regulations that came into force in October 2021.

According to the regulator, this initiative is already helping to drive consolidation, with 16 per cent of schemes from the pilot reporting that, having concluded their schemes do not offer good value, they have opted to wind them up.

Going forward, TPR will also be scrutinising information from DC scheme returns with the potential for fines to be issued for non-compliance.

TPR also confirmed that it has already issued a fine of £12,500 against a corporate trustee, with further fines to be issued "shortly".

Commenting on the update, TPR interim director for frontline regulation, Mel Charles, said: “Where trustees are found to be in breach of their duties on value, we’ll want to understand how they’ll improve.

“But, if they can’t or won’t, we expect them to transfer members to a better-value scheme and consider winding up their scheme.

“It is encouraging that our initiative has shown schemes are now actively choosing to wind up in the face of the new regulations.”

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