TPT Retirement Solutions has secured regulatory approval from the Financial Conduct Authority (FCA) to establish a commercial investment company to provide fiduciary management and consultancy services to defined benefit (DB) schemes.

Called TPT Investment Management (TPTIM), the company will also be responsible for the management of £10.4bn in combined assets of TPT’s existing master trust.

TPTIM’s fiduciary management service will be part of TPT’s new DB proposition set, which is being launched in the fourth quarter of this year.

The proposition will offer DB schemes the full suite of services enjoyed by those in a master trust — including trustee support, administration, actuarial, investment management and covenant — while allowing schemes to retain their existing trusteeship. TPT claims that this will allow schemes to benefit from reduced fees through economies of scale.

Cost savings are also expected to be made through the use of asset pooling, which is intended to give schemes the chance to gain exposure to a range of investments that would not necessarily be available to them as a standalone scheme.

To this end, TPTIM is launching a series of collective investment vehicles as Alternative Investment Funds (AIFs).

The use of collectives will allow the aggregation of the assets overseen by TPT with those of external pension schemes, generating immediate scale benefits across a wide range of assets.

TPT chief investment officer, Cliff Speed is to become the new CEO of TPTIM. Before joining TPT, he was managing director for BlackRock Solutions.

TPT Retirement Solutions CEO, David Lane, said the creation of TPTIM is a more flexible way for some DB trustees to gain from the benefits of a master trust model, without having to give up control of their funds.

“We remain firm advocates of the master trust model and are the standard bearers of consolidation," said Lane.

"However, we recognise that one size doesn’t fit all, and for some trustees joining a master trust is not a viable option.

"Through our new offering, we will offer trustees the ability to retain legal responsibility for the overall delivery of member benefits, whilst generating efficiencies through scale and access to best-in-class pension scheme investment management capability.

"This will provide better value to the schemes, incorporate the highest levels of stewardship and, ultimately, deliver better outcomes for members."

“Many lay trustees struggle to keep up with the growing regulatory responsibilities and administrative requirements placed upon them," he added. "TPT will be able to assist them with this as part of our new proposition."

Share Story: