UK - Trustees could face hefty compensation bills unless they deal with all beneficiaries of a self-invested personal pension properly, a provider warns.
David Phillips – director of pensioneer trustee firm DA Phillips – highlighted the possibility of human error and said it was vital trustees took all of the beneficiaries into account when making a decision and not assume one member was acting for somebody else.
Phillips – speaking at the ninth annual Henry Stuart Conference on SIPPS – said that failure to do so meant that trustees might breach the “duty of care” rules which included acting in the members’ best interests.
He said: “SIPPs are directed by members and therefore the duties of the trustees are not as onerous as they might be in an occupational pension scheme.
“This oversight could effectively give members an opportunity to appeal to the pensions ombudsman for compensation mounting to thousands of pounds.”
The People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...