The Pensions Regulator is set to consult further on the supervision and enforcement policy of the new master trust regime, after some schemes called for more detail.

In its response to its consultation on the authorisation and supervision of master trusts published today, 3 July 2018, TPR said that a majority of respondents were clear on its expectations, but that some needed clarity on supervisory returns in particular.

Under the current supervision proposals, TPR will open a “risk-based proactive process”, asking schemes to complete a supervisory return to ensure they are meeting requirements. Schemes looking to enter the market would be subject to tighter supervision once authorised.

Responding to the concern, TPR said: “We have previously outlined our plan to publish further information on the supervisory regime. We will be consulting on the supervision and enforcement policy with a view to publishing this prior to the 1 October 2018.

“This will provide master trusts with a more complete picture of the supervisory regime. Following this consultation we will consider the need for any additional guidance.”

Currently, a supervisory return can be issued once a year and could include a request for the most recent accounts of the scheme funder, updates to the business plan and the annual chair’s statement.

Trustees will have at least six weeks’ notice to submit the return.

Respondents also questioned the requirement to report “significant events”, noting that a scheme funder may have an insolvency event, but may not make any “material contribution” to the master trusts financial stability.

TPR said: “We are unable to waive or disapply the legislative requirement to notify us of a triggering event or significant event, where it applies. In relation to mixed benefit schemes that have multiple scheme funders that are also participating employers, Regulation 28 provides for a number of easements on the duties placed on trustees following a triggering event.”

Furthermore, TPR said it will be publishing checklists for the business plan and continuity strategy to help schemes review these documents before applying.

The regulator launched for consultation its code of practice for master trust authorisation in March, after lobbying the government for stricter rules and has so far received 28 responses to its consultation.

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