There are a significant number of changes including:
Perhaps the most significant change is the emphasis on the need to establish a system of internal controls that are proportionate to the size and complexity of the arrangements.
The regulations refer to a number of areas such as:
The Pensions Regulator issued a statement in July 2019 that, as part of the review of their code of practices in relation to IORP II, they will be combining the content of their 15 current codes of practice to form a single, shorter code.
The early focus will be on internal controls, the defined contribution code, public service schemes and master trusts as this will set out the features of effective governance that will apply to all types of pension schemes. The Regulator stated that Trustees will need to demonstrate that they have an effective system of governance within 12 months of publication of the updated code.
It was originally planned to be issued for formal consultation over the year 2019-20, however the Regulator has updated the timing of this to later 2020 or early 2021.
Crowe are already helping their clients to prepare their schemes prepared for when the expected changes come into play. Please contact Andrew Penketh, Stuart Henderson or your usual contact at Crowe.