The Pensions Regulator (TPR) has announced plans to “evolve” its supervision of master trusts to focus on investments, data quality and standards, and innovation at retirement.

At a TPR event, TPR executive director of market oversight, Neil Bull, said that the move aimed for master trusts to become the “gold standard” for pension provision.

He announced that the regulator would probe and challenge master trusts more on how their approach to investment delivers for pension savers.

Furthermore, TPR would investigate how master trusts are seeking the best possible long-term risk-adjusted returns, and look more broadly at master trust investment governance practice and investment decision making.

Master trusts will also be asked to provide ‘deep dives’ into their systems and processes.

“Value has to be the guiding light for all that we do,” Bull stated.

“For our engagement with master trusts that means: A focus on investments. A focus on data quality and standards. And a focus on innovation at retirement.”

He added that he wanted master trusts to see their relationship with the regulator as a partnership that mitigates harms, identifies opportunities for pension savers, and delivers value.

Master trusts were urged to “candidly” share their thoughts so TPR can explore their concerns and build evidence bases to understand the ‘bigger picture’.

Bull noted that many master trusts will have already seen a difference in how TPR engages with them on investments.

“Our visits need not be cause for concern but seen instead as a learning opportunity for us both,” he added.

“This will mirror the activity we see in the private sector when master trusts showcase their offer to employers explaining their operations.”

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