UK - Merrill Lynch Investment Managers has dropped AMP as administrator to its defined contribution platform.
The fund manager – which currently manages 300 DC schemes covering 20,000 individuals – has hired Alexander Forbes subsidiary DC Link to replace AMP.
MLIM said the handover would begin during the first quarter. It expects to complete the process by September.
Director, DC business, Steve Rumbles said: “This is not an issue about service. We’re happy with AMP’s service to date and we have its commitment that will remain in place for the rest of the contract.”
However, an industry source claimed MLIM had to replace AMP because its administration platform was closed to new business and would not receive the further investment MLIM believed was needed to compete going forward.
MLIM is also upgrading its communications materials and reviewing its DC investment options as part of those plans.
Head of institutional business Andrew Dyson said: “There are three pillars to a successful DC proposition: investment, administration and communications. We’ll also be announcing changes to our investment line-up shortly, and once we’ve done this, we think we’ll have a world class offering on each of the three pillars.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.