The number of master trusts to apply for authorisation has reached 39, The Pensions Regulator has revealed.

Publishing its final monthly master trust figures, the regulator said that since last month one new applicant has applied for authorisation. This brings the total number to apply to 39, with six already authorised, and a remaining 33 awaiting a decision.

Last month Now Pensions revealed it had submitted its application for master trust authorisation, six weeks after the initial deadline closed. The group was one of 11 schemes granted a six-week extension by the regulator. Salvus master trust also applied for authorisation in May

Authorisation has led to a consolidation in the master trust market, something which the regulator said it sees “evidence of this continuing”. Ten schemes have exited the market so far, and a further 35 have notified the regulator of a triggering event to exit the market. These schemes will transfer their members to an alternative master trust scheme or other appropriate vehicle.

Despite applications closing for existing master trusts, new master trusts can apply to enter the market at any time. They must provide evidence outlining how a scheme will meet the standards in five key areas. However, new schemes will be more intensely supervised than existing schemes because they will not have an operational track record.

“High intensity supervision will give these new master trusts the opportunity to demonstrate that they continue to meet the authorisation criteria,” the regulator said.

“Authorisation will increase the quality of master trust products and providers and therefore increase protection for members. For those master trusts that choose to exit the market, or fail to get authorised, we continue to work closely with trustees and associated key people to make sure the exit plans for their
scheme are orderly and meet our expectations as part of our role to ensure savers are not put at risk.”

This is the regulator’s final monthly numbers publication, now that the application period for existing master trusts to apply for authorisation has ended.

It said it will update its list of authorised schemes are more schemes receive authorisation. It will also publish further information on the consolidated master trust market near the end of 2019, once all existing master trusts have had a decision on their applications for authorisation.

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