The Pensions Regulator (TPR) has confirmed that it will provide new guidance on investing in private markets by the end of the year.

Speaking at the Mansion House Pensions Summit, TPR chief executive, Nausicaa Delfas, also confirmed that the regulator will be updating its existing investment guidance for defined benefit (DB) and defined contribution (DC) schemes “in due course”.

TPR previously confirmed plans for the updated guidance in light of the reforms announced during the Chancellor's Mansion House speech, with the guidance initially planned for the 'autumn'.

“Whilst we would not advocate for investments in one asset class over another, we are supportive of innovation which is in savers' interests and initiatives which call on trustees to consider well thought out diversified investment strategies,” Delfas continued.

“Private market investments of course can have a part to play in a diversified portfolio and new ways to access these opportunities are becoming available to trustees, such as long-term asset funds.”

Furthermore, she noted that TPR’s upcoming DB Funding Code will clarify that there are no limitations on what constitutes suitable assets in which to invest, and all schemes can invest in growth assets.

While TPR was “supportive” of attempts to help trustees consider alternative asset classes, Delfas emphasised that the regulator will not be telling schemes how to invest and those decisions remained in the hands of trustees.

Discussing the regulator’s evolving approach, Delfas announced that TPR was set to launch a new digital and data strategy that will set out its ‘future transformation’.

“We will be expecting schemes of all types to not only disclose ever more information, but to also analyse, interpret and act to spot and mitigate risks before they materialise,” she said.

“We will need to work together to harness the powers of data and digital so we can quickly and easily spot potential risks and threats across the whole system, and react accordingly.”

Furthermore, Delfas stated that TPR was evolving its regulatory approach to help shape the market towards fewer, larger, well-run schemes that were capable of investing in a diverse range of assets.

She warned schemes that do not have the scale, expertise or appetite to “truly deliver for savers” that it was time to consolidate and move their members into a scheme that can.

Going forward, TPR expects schemes to have sophisticated investment governance practices, an ‘efficiency mindset’, and highly qualified trustees.

“We are at a critical and exciting time for pensions and investments in the UK,” Delfas said.

“It is up to all of us here to help make the pension system work as well as possible for millions of pension savers.

“TPR stands ready to work with you, to protect savers’ money, enhance the pensions system and support innovation in the interests of savers.”

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