Sole Trustee Service
Our Sole Trustee service helps our clients manage their pension schemes compliantly and cost-effectively. Having provided sole trusteeship services for over 20 years, we are seeing the demand for our expertise increase across all sectors.
Adding value as a Sole Trustee
Our sole trusteeship offers you assurance, secure in the knowledge that your pension scheme is meeting all of the necessary regulatory requirements and proactively working towards achieving its objectives.
As one of the leading providers of independent pension trustee services in the UK, over 60% of our trustee appointments are now under our Sole Trustee Service.
We, therefore, have extensive practical experience in helping support Companies and Boards move to this structure. Our Sole Trustee Service governance framework includes a rigorous peer review system, and all our appointments are subject to independent scrutiny by our Governance and Compliance Committee. Our sole trusteeship appointment processes and procedures are also independently audited on an ongoing basis, ensuring compliance with the Assurance Reporting Framework (AAF02/07).
Every Sole Trustee appointment has two named trustees appointed with complementary skills to meet the specific Scheme requirements. Our approach is to provide a proactive and strategic service that delivers an:
- Open and dynamic approach with the Company.
- An annual meeting focused on establishing clear strategic objectives for the Pension Scheme in conjunction with the Company.
- An established appointment process designed to take on a new scheme as efficiently as possible.
- An annual operational meeting with the Scheme Advisers to ensure services are delivered cost-effectively and to the required standard.
- Regular action driven updates to progress issues, manage risks and control budgets.
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Our Sole Trusteeship Service
It is becoming harder for many schemes to find new trustees. The criminal and civil penalties incorporated in the Pension Schemes Act 2021 are making non-professional trustees more hesitant in continuing or taking on a trustee. In addition, many existing trustees are now looking for a planned retirement. These include Member Nominated Trustees who are often highly trusted people within the membership.
By building in a succession plan, it means, that when taking on a Sole Trustee appointment, we can work alongside the existing trustees as part of a planned handover. This enables a period to enable the transfer of historic scheme knowledge from the existing Trustee Board. This will help your existing scheme trustees to retire secure in the knowledge that member interests are protected.
Sometimes, this option isn’t available, in which case we have a tested knowledge transfer checklist to make the handover as smooth as possible.
As professional pension people, when appointed as Sole Trustee we are able to act far more quickly than a traditional Trustee Board, which often needs to build in time for training and the input of a wide range of advisers.
Our expertise and focus on professional development, means that we are aware of the latest market developments. we can also share best practice across a number of different schemes. This is particularly beneficial when responding swiftly to changing investment market conditions or legislative developments.
As Sole Trustee, we can streamline the communication and decision-making process and deliver a consistent approach, so that whilst the Company receive regular reporting updates on the Scheme, they do not need to be involved in its day to day activities.
Recognising the growing demand for professional sole trusteeship, a Code of Practice has been published by the Association of Professional Pension Trustees (APPT) and all our Sole Trustees appointments are subject to rigorous processes for adhering to the requirements of the Code of Practice.
Appointing a Sole Trustee frees up management time, enabling them to concentrate on the business. We streamline the operational governance and focus on the strategic objectives. This leads to shorter, more proactive decision-making processes, which aids the delivery of the scheme objectives. and significantly improves cost control. It enables us to make best use of advisers, agree fixed fees and budgets, supported by a proactive approach to actions which also helps advisers manage their costs.
It might be a Sole Trustee appointment but that doesn’t mean you trustee is on their own. As well as having a second, experienced trustee as their support as part of our governance structure, they also have access to the wider trustee team, with a range of backgronds and experience.
Your Sole Trustee can also access our secretariat team to deliver a comprehensive scheme management solution. This can help deliver even greater cost control and budget management. Whilst our adviser review services, enables your Sole Trustee to access the latest information on typical adviser fees and service development. This makes it straightforward to benchmark current terms to assess value for money.
We also leverage our scale of Sole Trustee appointments to deliver cost effective and innovative solutions to the benefit of our clients. Whether this is agreeing terms with Guide, to provide members with access to quality advice at retirement, or working with Knowa, the award-winning organisation, to deliver an online governance system that helps control the increasing burden of pension regulations.
Sole Trustee Service Frequently Asked Questions
What is a sole trustee?
Replacing the conventional trustee board structure, a sole trustee is a qualified person or organisation designated to take on complete management of a pension plan. This method maintains regulatory compliance while guaranteeing effective and knowledgeable decision-making.
Why would a pension scheme choose a sole trustee?
Schemes may decide on sole trusteeship in order to streamline governance and decision-making procedures, get around issues like conflicts of interest or the hiring of trustee board members, and guarantee access to professional knowledge for handling intricate scheme requirements.
Is there the danger of an increased conflict of interest as it is the Company that appoints and remunerates the Sole Trustee?
Whilst a Sole Trustee appointment replaces the traditional Trustee Board and removes the requirement for member nominated Trustees, it still retains exactly the same fiduciary duties as a traditional Trustee Board including being fully independent in its relationship with the employer. In practice, the Company is fully involved in strategic decision making and setting Scheme objectives. Provided the Company and Trustee share common objectives, the scope for conflict is dramatically reduced. If, despite these steps, a genuine conflict arises, then having a second named Trustee and a strong client manager system should give alternative ways of managing conflicts.
What about the loss of knowledge from the existing Board?
As part of a transition to a Sole Trustee structure, there would ideally be a suitable handover period where we are a member of the Trustee Board to help us gain familiarity with the Scheme and the culture of the organisation. Sometimes where there is a need for an immediate appointment, we can set up set up a Consultation Committee (either formally or informally) during the first 6-12 months of the move to Sole Trustee. This can comprise of previous Trustees and/or a Company representative and enables the Sole Trustee to have a forum to call upon for additional input into areas such as member communications. There will always be the need for a detailed checklist upon any new Sole Trustee appointment to understand the current documentation, previous decisions and historic issues, as well as the current governance framework including reporting requirements to the Company.
How do I know the Scheme is being managed compliantly and cost effectively?
Ensuring that a pension scheme is being managed compliantly always involves a combination of due diligence, regular monitoring, and adherence to legal and regulatory requirements. It is important to note that a Sole Trustee framework shouldn’t be dependent on one person. For example, professional Trustee firms such as ourselves will generally provide two named Trustees. This give you keyman cover but also enables a rigorous peer review process to be in place. In addition, there will be other internal processes such as our Governance and Compliance Committee (GCC) which ensures that we are managing risks in a consistent manner and provides robust challenges to our decision-making process. Clear budgets are always agreed as part of any appointment and your Sole Trustee will provide transparent reporting as required.
Get Started With Our Sole Trustee Service
Our expert sole trustee services help you manage your pension schemes with our years of experience and knowledge. Our team of professionals are dedicated to ensuring compliance and the best outcomes for you. By working alongside us, you can rest assured knowing your scheme is in the best hands with a clear understanding of every step.
Please feel free to contact us today to learn how we can support your pension scheme with our trusted sole trustee service.
Or discover our other professional sole trusteeship services. If you need help developing your board members and the role of Chair of Trustee, or perhaps you would like some additional expertise when it comes to committee and working group membership.
