3rd February 2016
IC Select launches enhanced Fiduciary Management Stewardship Service
IC Select has launched an enhanced Stewardship Service to further assist Trustees with oversight of their fiduciary manager. This enhanced Service follows their work with the UK Power Networks Pension Scheme in selecting their fiduciary manager and establishing a framework for effective oversight of their fiduciary management relationship. It is the rigour with which the UK Power Networks Pension Scheme approached the move to fiduciary management, the selection of the manager and their determination to establish an effective oversight of their manager that has allowed IC Select to refine and enhance its Stewardship Service.
Fiduciary management is becoming an increasingly attractive proposition for many Boards and we are seeing the market develop to accommodate this. However as this approach involves significant delegation of authority to the chosen firm, it is essential that Trustees implement a robust governance oversight structure to comply with the requirements of the Pensions Act 2004. Failure to comply with the Act could leave Trustees personally liable for any failure. The oversight should ensure that Trustees have appropriate visibility of the resources and operational platform of the fiduciary manager, key risks including investment, operational and governance risks as well as the performance of the Scheme assets.
IC Select’s Fiduciary Management Stewardship Service provides a comprehensive and cost effective oversight service that combines access to IC Select’s unique in-depth due diligence of fiduciary managers within a robust oversight structure. This complements any existing oversight and allows Trustees to apply resources in the most cost effective and efficient way.
An essential element of IC Select’s Stewardship Service is the provision of a unique risk management framework that allows clear line of sight for Trustees of the key risks inherent in the operation of any fiduciary management service – operational and governance as well as investment risks.
Peter Dorward, IC Select, Managing Director said: "The Trustees of the UK Power Networks Pension Scheme set the highest governance standards for their scheme. They have taken a diligent and detailed approach to both the selection and the establishment of their oversight framework for their fiduciary manager. This has meant that we have had to enhance areas of our approach to meet their needs, in particular in the design and implementation of an appropriate risk management framework. This risk management framework will ensure they have early sight of any potential challenges in their relationship with their fiduciary manager.”
Michele Hirons-Wood, Head of Pensions, UK Power Networks said “We are delighted we appointed IC Select to work with us on this important project. Their detailed understanding of the fiduciary management market and their willingness to customise their work to meet our needs has enabled us to build a comprehensive and robust platform for oversight of our fiduciary manager. We are confident that this will provide comfort to our members and simplify the ongoing management of our scheme. Having IC Select continuing to provide practical oversight for the UK Power Networks Pension Scheme is essential for our trustees to enjoy piece of mind and continued protection from the requirements of the Pensions Act.”
Notes to Editor:
For further information please contact:
Peter Dorward, Managing Director
0131 221 6505
IC Select, Forth House, 28 Rutland Square, Edinburgh EH1 2BW
Tel: 0131 221 6505, Fax: 0131 221 6506.
IC Select, the oversight and selection specialist, specialises in helping pension funds select, monitor and review investment consultants and fiduciary managers. The firm's assessment capabilities leverage on its unique positioning:
- wholly independent
- free of conflicts
- research led
- focused on assessment from an investors' and investment perspective
IC Select is a wholly independent organisation and is placed in a unique position amongst third party evaluator firms, as the only organisation that is able to conduct in depth research of both the advisory and delegated investment services of the major investment consultants, as well as other fiduciary management providers. By not competing with these firms, IC Select has unparalleled access to detailed information not available to other third party evaluators.
As a result, trustees can be more confident in the quality of their investment decisions and are able to enhance their scheme governance.