Monitoring DC Asset Security – new report

Security of Asset Working Group report (Guide to monitoring changes)

DC Asset Security

Understanding the security of DC members’ assets is an important, and often complex, task for trustees. The Pensions Regulator requires trustees not only to understand the levels of protection that are in place if there was any failure in relation to the scheme’s managers or platform provider but also to let members and employers know about the results of their investigations.

The Working Party on the Security of DC Assets has been running for around three years and aims to help trustees better understand this complex issue and to provide help in identifying the types of questions they should be asking their managers and providers and communicating the results to members. The Working Party are engaging with a number of the main industry bodies to get further clarity on this issue and will provide updates as these become available.

We currently provide three reports which you can download below. One of these sets the scene in respect of the DC Code and the potential issues which may arise regarding Security of DC Assets. The second report is a Communications guide to help Trustees pose suitable questions to their advisors, investment providers and platform managers regarding Asset Security.

The third and most recent is a Guide for Trustees in monitoring changes which may arise in the funds being used, together with potential actions the Trustees may wish to take in order to maintain protection of member interests.

We hope you find the guides helpful and would welcome any feedback based on your own investigations of this issue.

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