The Pensions Regulator (TPR) published remarks by CEO Nausicaa Delfas urging asset managers and the wider investment industry to bring forward new funds and investment products that help pension trustees diversify investments and deliver better long-term outcomes for savers, as the defined contribution (DC) market shifts towards fewer, larger schemes. The speech pointed to rapid DC system changes across 2023-24, including memberships rising to more than 30 million (up 6% annually), assets under management growing by 25% (from GBP 164 billion in 2023 to GBP 205 billion in 2024), and the number of non-micro DC and hybrid schemes falling by 15% (from 1,080 to 920). It also highlighted growth in Long Term Asset Funds (LTAFs), from one in 2023 to eight umbrella funds and 23 sub-funds in 2025, and challenged managers to provide trustees with “genuine choice”, including whether FCA-authorised LTAFs could be integrated into default strategies and whether multi-asset solutions could be designed for decumulation. TPR also flagged forthcoming policy and supervisory developments, including a planned trusteeship strategy to help trustees navigate a landscape of “mega funds and superfunds” and the forthcoming value for money framework, which it characterised as enabling greater scrutiny of schemes.
The Pensions Regulator 2025-06-26
UK's The Pensions Regulator urges asset managers to develop innovative long-term value products for pension trustees
TPR CEO Nausicaa Delfas urged asset managers to create new funds to help pension trustees diversify investments amid shifts in the defined contribution (DC) market. Delfas noted changes in the DC system, including increased memberships and assets under management, and fewer non-micro DC and hybrid schemes. TPR also mentioned upcoming policy developments, like a trusteeship strategy and a value for money framework to enhance scheme scrutiny.