The Pensions Regulator has published a revised description of a professional trustee for consultation, as part of its 21st century trustee initiative.

TPR’s consultation comes in response to trustees seeking clarity about which trustees would be held to higher standards and how that applied to fines that may be levied on them.

The regulator’s trustee initiative looks to raise standards of governance and administration to protect member benefits by clearly outlining what its expectations of trustees and seeks to take action quicker where standards are not met.

It is noted that TPR considers a professional trustee to have a higher duty of care to members and is any person who “acts as a trustee of the scheme in the course of the business of being a trustee, or is an expert, or holds themselves out as an expert, in trustee matters generally.”

TPR has invited comments on its revised description of professional trustees. The consultation on TPR’s draft monetary penalties policy will run from 23 March for six weeks.

TPR executive director for regulatory policy, Andrew Warwick-Thompson said: “By consulting on our monetary penalties policy we are inviting views on our approach to applying fines on trustees and other scheme managers, but we are also sending a clear message that we are getting tougher on poor governance.

“We want trustees to understand that action may be taken where they fall short of expectations. We have shown that we will act where trustees are not complying even with their basic duties.”

Warwick-Thompson added: “We are leading an open and extensive debate on standards of trusteeship and today’s consultation is an important part of the package we are developing that will continue to clarify our expectations of trustees, when we will act and where standards should improve.

“Our 21st century trustee strategy is seen by us as key to meeting our regulatory objectives. Good governance is essential to pension schemes delivering good member outcomes. This is why we and the industry support improving standards of trusteeship. We will announce further parts of the package and future plans in the coming weeks.”

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