Just over one in ten (12 per cent) finance leaders in companies with a defined benefit (DB) pension scheme are currently making use of a corporate sole trustee (CST), despite widespread familiarity with the role, research from LawDeb has revealed.

The survey found that while the vast majority (95 per cent) of respondents are aware of the CST role, less than half (43 per cent) claim to have full knowledge of its function, which LawDeb said showed a "significant" gap between awareness and understanding.

In addition to this, a further 53 per cent admitted to having limited understanding, and 3 per cent said they don’t know what a CST does, although only 1 per cent had never heard of the role at all.

Despite this, the research showed that CSTs are increasingly being recognised for their ability to enhance pension scheme governance and operational efficiency.

In particular, 42 per cent of respondents cited improved cost efficiency as a reason for appointing a CST, while more than a third (37 per cent) also believe a CST would help improve risk management, and 35 per cent see their value in enhancing governance processes.

In addition to this, 30 per cent said a CST could accelerate operational procedures, 27 per cent noted its use in succession planning, 20 per cent believed a CST could support endgame strategy, while just 2 per cent did not see any advantage in using a CST.

Given this, LawDeb suggested that many more companies would benefit from considering a CST, with head of CST, Scott Pinder, arguing that while CSTs are no longer an unknown entity, there is an opportunity to bridge the knowledge gap and help organisations fully understand the strategic value they can offer.

"CSTs can sit across a number of schemes; and while each one has unique elements, bringing in a CST’s experience in proven best practice can help businesses reach faster decisions, navigate challenges and quickly access expertise," he continued.

"As companies face increasing pressures around cost, compliance, and strategic planning, the role of CSTs could become pivotal in driving long-term successful outcomes and resilience in pension scheme management. ”

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