UK - Trustees are failing to meet corporate governance best practice standards, an in-depth study shows.
A report by consultant PricewaterhouseCoopers shows most trustee boards still face difficulties identifying and implementing governance changes – three years on from the Myners Report.
The findings run counter to confidence among trustees that they are assessing their schemes for Myners’ governance compliance effectively.
The research, which surveyed 66 chairmen of trustees broadly within the
FTSE250, showed that less than half of schemes assessed the performance of advisers and delegates – a key recommendation from Myners.
PwC national pensions audit practice chairman Andrew Evans said: “Trustee boards are keen to enhance governance, but may have lulled themselves into a false sense of security by making some moves to comply with Myners.”
The survey also showed that nearly two-thirds of schemes did not have a governance policy in place or if they did, it was not used for decision-making. And almost nine out of 10 did not have individual governance objectives.
The Pensions Bill states that trustees must have the knowledge and understanding of pensions and investments required to fulfil their role as trustees.
But the survey showed almost half of trustee boards do not review the knowledge and skill base of their trustees. And only 40% documented their discussions and decisions reached with the sponsor.
PwC’s Survey of UK Pension Scheme Governance Results can be viewed at www.pwc.com/pensionsgovernance.
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