Why should trustees be concerned about oversight of their fiduciary manager?
The Pensions Regulator makes very clear that trustees are ultimately accountable for all decisions made in relation to the appointment and monitoring of the Scheme's fiduciary manager. It emphasises the need to have processes in place to monitor the actions of these advisers including a process to 'regularly evaluate their performance and service'.
Trustees should also ensure that all their advisers and providers have adequate arrangements in place for disclosing and managing conflicts of interest.
What are trustees really accountable for in a fiduciary management relationship?
The Pensions Act 2004 states that trustees are accountable for all aspects of the Scheme including investment of the assets and maintenance of the funding ratio as agreed with a Scheme's sponsor. It is essential that prior to and once implemented all roles adopted by the trustees, fiduciary manager, custodian and other advisers are clear.