UK - Company solvency fears are putting trustees on a collision course with scheme sponsors, Trustee Risk Management chairman Brian Holden claims.
He says trustees are watching companies “like a hawk” following a number of high-profile business failures where scheme members have been left with virtually nothing.
Holden said: “Trustees know they must take a more regulatory stance over sponsoring employers and their schemes following the ASW case.
Holden – speaking at The Pension Show – acknowledged the trustees’ harder stance would create conflict between them and employers. But he said there was no “other way”.
Alexander Forbes Trustee Services director Nicholas Boyes agreed. He said: “The ASW case has shaken up the trustee industry and we are going to take a harder line.
“Trustees will be checking the health of the schemes and if there is shakiness, members will be told about it.”
More than 500 former ASW scheme members stand to lose up to 90% of their pension entitlements after the company collapsed in July 2002.
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