The UK pensions market has strong confidence in the role of professional trustees and believe they provide good value for money and expertise to trustee boards, a study from Barnett Waddingham (BW) has found.

Its annual Professional Trustee survey showed that 97 per cent of lay trustees and corporate respondents would recommend appointing a professional trustee.

The study highlighted the “increasingly vital” role professional trustees play in improving scheme governance, supporting decision making and navigating an increasingly complex regulatory environment.

Furthermore, 95 per cent of respondents said that professional trustees provided good value for money.

BW said this was clear evidence that professional trustees enhanced overall board knowledge, bring external market insight, and increase confidence in complex decision making.

Differing motivations for appointing professional trustees across scheme sizes were also highlighted in the study, with the smallest and largest schemes having “notably distinct” needs.

Despite strong trust and appetite for professional trustees, BW noted that awareness remained a barrier among schemes not using them.

Nearly three quarters (70 per cent) of respondents who do not currently work with a professional trustee said they had never considered appointing one.

Of these, 74 per cent cited confidence in their existing trustee board’s experience as the primary factor for not exploring the option.

BW said the survey suggested a continued need for greater market-wide awareness, especially around the role and benefits of corporate sole trustees.

“Our research clearly shows the strong value that professional trustees bring: deeper expertise, richer market insight, and improved confidence in decisionmaking,” said BW partner and head of corporate sole trustee, David Barnett.

“This leads directly to better governance and ultimately better outcomes for members.

“At the same time, the data highlights a real opportunity to raise awareness among schemes that have not yet considered professional trustees.

“Also, the need for further work in demonstrating the value delivered by the corporate sole trustee model.

“As the market continues to evolve, professional trustees will play an increasingly central role in helping schemes meet regulatory expectations and deliver member-first results.”

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