The Pensions Regulator has outlined its supervisory approach towards authorised master trust following the full closure of its application period.

In a blog post published today, 14 May, TPR head of master trust authorisation and supervision, Kim Brown, said that schemes will be required to send the chair’s statement, annual reports and accounts, scheme funder accounts and a supervisory return to the regulator on a yearly basis.

TPR added that it received 38 applications following a six week extension period from its original deadline, which saw a further eight apply, one scheme that decided not to and one that no longer met the definition of a master trust.

Brown said: “We now have the final number of applications for existing master trusts and we will be continuing to assess these applications over the coming months.

“Once authorised, master trusts will immediately be supervised by us. The supervision of authorised master trusts is vital to ensure the new standards imposed in this market are not only demonstrated to us as part of the application process but also continue to be met in the future.”

As part of the reporting process, schemes must also alert the regulator of any “significant events” which means a master trusts may no longer meet the criteria or “triggering events” which may pose an immediate threat to the operation of the scheme.

“Supervision aligns with our new approach to regulating trust-based pension schemes and is an example of how we are working more proactively to tighten our regulatory grip to protect savers.

“Schemes will be expected to be open, honest and transparent and proactively volunteer information to us about any material developments, risks and issues,” Parish added.

So far six master trusts have received authorisation, after the Universities Superannuation Scheme (USS) became the latest to receive the go ahead.

USS joins Evolve Pensions’ schemes, The BlueSky Pension Scheme and The Crystal Trust, Willis Towers Watson's LifeSight and Legal & General's two schemes in being granted authorisation.

Commenting on the update, Barnett Waddingham head of defined conribution, Mark Futcher, said casualties are to be expected.

“The most interesting aspect of the authorisation process will be those master trusts that do not receive authorisation. We would expect a number of casualties from this list of 38; the industry knows there are still some poorly run master trusts out there – some still have historic errors to rectify," he said.

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