UK - Regulators have launched an in-depth review of 49 schemes with "sizeable deficits" to see how they have been handled by trustees and consultants.
The Occupational Pensions Regulatory Authority wants to see how much control trustees had over their schemes and their compliance with funding regulations. The study is due to be completed within the next five months.
OPRA spokesman Nick Edmans said one key question would be whether trustees had delegated their responsibilities without monitoring properly what was done by internal staff or external advisers.
“We’re trying to get an idea of the standards of practice, the state of compliance with legislation that surrounds the funding area and the level of engagement by trustees. One issue is that trustees have often delegated, but have not got themselves up to speed with what’s being done in their name.
“They need to understand what the actuaries and auditors are doing, to understand what the basic legal requirements are, and sometimes that’s not the case. That’s the sort of thing we’re looking for.”
Edmans said the findings would help determine OPRA’s policies for dealing with schemes with deficits.
“This sort of thing will help us to form our own strategic approach. It is very important for a regulator in our position to assess what is going on.”
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