![]() ![]() These arrangements should enable effective and timely decision-making, focused on the decisions most likely to make a difference. ![]() We expect you to have suitably documented investment governance arrangements that are appropriate for your scheme’s circumstances, including their level of complexity. The Law Commission has prepared an overview (see chapters 3 and 4), summarising the interaction between relevant parts of the law including trust law, pensions law, financial services legislation and the scheme’s trust deed and rules. Your scheme’s investment governance arrangements need to be consistent with your legal powers and responsibilities regarding investment. Where investment powers are not delegated, it is important to obtain relevant professional advice in relation to the scheme’s investments (and in some cases you must do so), but it is your role to decide how scheme assets should be invested. In the case of AVCs, where legal obligations apply you should consider the risks to members in the context of the significance of the value of AVCs relative to members’ overall benefits in the scheme, and apply a proportionate approach to meeting the relevant standards in our DC code.Īs a trustee board, you retain ultimate responsibility for a scheme’s investments, but this doesn’t mean that you have to (and you may not be permitted to) do everything yourself and you may find professional advice is required to understand where delegation is appropriate.Ĭertain tasks and decisions can be delegated, but you should take reasonable steps to satisfy yourself that whoever is undertaking the task has the appropriate knowledge and experience and is performing their role competently in accordance with section 36 of Pensions Act 1995. Often, the methods you choose to adopt will depend on the nature of your scheme and its membership. The guides are not intended to be prescriptive, though in some instances we state what we consider to be best practice (ie an approach that should be followed in most circumstances). The guides aim to provide you with practical information and examples of approaches you could take, and factors to consider. You should read the DC code before you read this guide. While the DC code sets out the standards we expect you to meet when complying with the law, the guides provide information on how you might meet those standards in practice. This is one of six guides to support trustee boards in meeting the standards set out in our Code of practice 13: Governance and administration of occupational trust based schemes providing money purchase benefits (‘the DC code’). ![]()
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