The Pensions Regulator has announced a new framework to oversee professional trustee (PT) firms, formally extending its engagement with the sector as part of its shift toward a more prudential, risk-based and outcome-focused regulatory approach aimed at protecting pension savers. TPR’s move follows evidence gathering with 11 of the largest trustee firms, which highlighted a range of business models and a significant expansion in the number of professional trustees, creating different risks and opportunities for savers. The regulator noted that more than half of UK pension schemes now use a professional or sole trustee model and that 10 firms govern more than GBP 1 trillion of savers’ retirement income. Alongside the announcement, TPR published a market oversight report flagging potential risk areas including relationships with employers, profit and remuneration models, sole trusteeship, in-house advisers and scheme decision-making arrangements. TPR’s Market Oversight team will begin establishing ongoing supervisory relationships with PT firms from the summer, with coverage extended to remaining firms by the end of the year, and it has invited industry views and information on risks in the PT market.
The Pensions Regulator 2025-04-02
The Pensions Regulator extends supervisory oversight to professional trustee firms
The Pensions Regulator (TPR) has introduced a new framework to supervise professional trustee firms, enhancing its risk-based regulatory approach to protect pension savers. This follows evidence from 11 major trustee firms, revealing diverse business models and a rise in professional trustees, with 10 firms managing over GBP 1 trillion in retirement income. TPR's Market Oversight team will establish supervisory relationships with these firms, identifying risks in areas such as employer relationships and remuneration models.