Today, the government published its response to the consultation on Pension Trustee Skills, Capability and Culture, which looked to address any gaps in trustee skills to assess and invest in opportunities to deliver good outcomes for members. 

Overall, responses to the consultation also confirm that Pension Trustees indeed have the necessary skills to assess investment opportunities, especially in productive finance where appropriate. 

The two biggest outcomes from the document are the rollout of a trustee register, which will be a joint initiative between DWP and TPR. 

There is also encouragement for trustee accreditation, which could turn into legislation. The consultation suggests a minimum of one accredited trustee on every board. 

While the consultation response acknowledges that more can be done to ensure trustees can get more training and support, increasing focus on low costs across the pensions industry, but in the DC space, in particular, is a key barrier to better long-term outcomes. 

Nathalie Sims, partner at LCP, says: “It’s encouraging that TPR and the DWP are pushing forward on the Trustee Register they introduced over the summer. This allows oversight of Pension Trustees across the industry, especially the Professional Trustees. This is particularly important due to the soaring growth rate we are seeing across the market. 

“It’s good to see recognition in the response for the role of consultants and asset management industry in ensuring that enough education and training is being given to Trustees. This will mean that they have up-to-date information about the full breadth of asset classes in a rapidly evolving and innovative investment market.” 

“While a mandatory trustee accreditation scheme makes sense for new trustees, there is little value or merit in doing this for experienced trustees. Many have demonstrated their skills and capabilities working on an array of schemes, and a market-wide scheme would potentially be a bureaucratic nightmare with no actual gain. It risks being a tick-box exercise that fails to enhance skills or ultimately benefit members.”