You’ll have heard about our ambition for a world of fewer, larger pension schemes. We are already some ways there. Most DC savers are in master trusts, which we authorise.

But there are still those in small schemes, many of which lack the same standards of governance as master trusts.

We want a reshaped market where schemes deliver good saver outcomes with a laser-like focus on value.

Work is ongoing on a value for money framework, under which DC schemes’ performance will be compared against the market using objective data on the key components of value.

While the framework is not here yet, we’ve seen indications our work is already having an impact.

Last year, we launched an initiative to make sure trustees of schemes with less than £100m in assets comply with regulations to undertake a more detailed assessment of value than larger schemes.

Through a pilot with a small number of hybrids, we discovered 16 per cent had concluded their scheme did not offer good value and would wind up. We also issued a fine, of £12,500 and expect more in the future.

This isn’t the end of the initiative – we will now look at information from DC scheme returns. If the same proportion opt to wind up as in the pilot, it will be a significant step towards a landscape where only schemes delivering good outcomes remain.

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