Just one master trust has applied for authorisation since new legislation around the fit and proper running of the schemes came into force on 1 October, TPR has said.
According to its latest monthly figures, 33 master trusts are now expected to exit the market, up from 30 master trusts at the end of October, while three schemes have completed their exit.
Master trusts now have just under five months to apply for authorisation, and while the latest figures suggest take up is slow, TPR believes it to be an indication of how seriously master trusts are taking the authorisation process.
TPR added that the number of master trusts has fluctuated as “trustees have refined their understanding of whether schemes meet the statutory definition of a master trust as provided for in legislation”.
“We expect the remaining 53 master trust schemes to either apply for authorisation or trigger their exit from the market in the coming months. We anticipate more schemes will choose to leave the market before the authorisation window closes on 31 March next year,” TPR said.
The regulator has been in close contact with the schemes, allowing them to submit draft applications prior to the authorisation process.