As an organisation our transformation is ongoing as our teams continue to embed and enhance the changes we’ve made to become a more responsive, agile and market facing regulator.

When I joined The Pensions Regulator (TPR) in 2013, our focus was much more on DB, for good reason. Over the years there has been a steady change in focus towards the DC landscape, starting with learning the true shape and size of the master trust market, through authorisation to the supervision we have now.

It’s been an interesting journey. In particular, I have been struck by how well we can respond to change, engaging with DWP and HMT and adapting our day-to-day work and processes to reflect government policy on the ground.

We are a very different beast compared to 12 years ago. We have seen the master trust market evolve into fewer and better run schemes to now, where the focus is ensuring authorised schemes strive to offer the absolute best for savers through continuous improvement. We have always looked to have a seat at the table, to be made aware of and understand risks before they become issues and engage with and support trustees when they do. I think we do this better now than ever before, and I’d be very interested in your thoughts on how we are performing.

Our evolution

The next steps in our evolution are set out in our recently published Corporate Plan. The plan describes our focus on driving up trusteeship standards, delivering value for savers and encouraging the development of safe pathways that lead to good retirement outcomes. It explains how we are helping to prepare the industry for the transformative impact of the new Pension Schemes Bill, which will reshape the pensions market.

Value for money

I also encourage you to read our recently published blog by our interim Director of Pensions Reform, Patrick Coyne. Patrick kicks off the blog with a description of the people working to restore an old hotel opposite his home office. His observation that they may not be able to do this work as they get older really brings home the importance of value for money and adequacy in pensions. Savers depend on it. Patrick encourages trustees to rethink their role, not just as stewards of assets, but as enablers of good retirement outcomes. He affirms that “generic solutions that resort to basic signposting to products such as drawdown will not cut it. Trustees must consider how different defaults will suit different types of savers. And bring forward plans for simple but tailored support, smarter decumulation strategies and clearer guidance.”

Environmental Social Governance

We are also encouraging schemes to prepare for the risks of climate change and nature loss by going beyond compliance. A recently published blog by our climate and sustainability lead Mark Hill calls on trustees to treat climate change and nature loss as “core financial risks, not optional extras”. Mark sets out how we are raising expectations around investment governance. We want trustees to ensure that decisions are long-term, well-evidenced, and subject to appropriate challenge. Mark highlights “this is not just about compliance, it is about leadership.”

I’ve given a snapshot of the key developments shaping TPR’s approach and the master trust market. In this evolving environment, staying informed is essential – our quarterly Master Trust Bulletin provides the latest master trust insights and updates. You can read the September bulletin here. Sign up for our Master Trust Bulletin to make sure future editions are delivered directly to you.

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The opposite view from Reform.

There is an opposite view on regulation and it is from Reform. I have represented it recently as it is a challenge that currently has the vague support of a very large part of the British public.  Here is a statement on regulation (FCA not TPR but imagine an extension)

Banks, who Reform UK calls a “senior” member, told the Financial Times that the party should “radically cut away at” the British civil service if Farage leads Reform to victory at the next UK general election.

The 59-year-old, who made his fortune in insurance, said a potential Reform government should scrap the Financial Conduct Authority, the City regulator, along with media and internet watchdog Ofcom, the Electoral Commission and the Competition and Markets Authority.

“We operated quite happily before it existed and if it went tomorrow we wouldn’t miss it,”

he said of the FCA, which has responsibilities for protecting consumers and promoting competition in financial services. Banks said the Bank of England could instead oversee the biggest financial institutions, with “nothing” replacing the FCA elsewhere.

Now is an uneasy time

There is much that Reform would condemn to the dustbin and they say they will replace it with nothing. It is a challenge not far from that of Robin Ellison’s over the years.

If we are to have a proper debate on the Pensions Regulator, we must hear not just the sensible centre but the extremes at either end. At one end of regulation is an extension of expansion of TPR and FCA and PRA. At the other extreme Aaron Banks and Reform.

Where does the country stand and where do we stand?