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Pensions & Retirement

Minimum standards needed for pension scheme administration, says Trafalgar House

The firm warned against a full FCA-style regime, saying this would push up costs and reduce market capacity without improving service. 

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Minimum standards needed for pension scheme administration, says Trafalgar House
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Trafalgar House has called for mandatory minimum standards in pension scheme administration, saying practical governance matters more than complex regulation. 

In its response to the Department for Work and Pensions’ consultation on trustees and governance, the firm backed minimum standards for pension administrators and ISPs, focused on outcomes like accuracy, timeliness, data quality, security and operational resilience.

The firm warned against a full Financial Conduct Authority (FCA)-style regime, saying this would push up costs and reduce market capacity without improving service. 

Trafalgar House also said existing assurance frameworks such as PASA accreditation, ISO certifications and AAF 01/20 reports should be recognised to avoid duplication and unnecessary burden.

Clear expectations for cyber governance and transition oversight were highlighted, especially around scheme consolidation and dashboard readiness. 

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The firm said trusteeship reform must align with administration reform.

Garry Wake (pictured), managing director at Trafalgar House, said: “Stronger governance only works if it drives better outcomes, not just more paperwork. 

“Too often, the pensions industry equates more oversight with more effectiveness. That’s a mistake.

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“There’s also little point in raising trustee standards if administration remains the weakest link.”

Wake added: “Trustees need clear, comparable data on service performance, and they need the confidence to challenge it. 

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“We also question the reliance on member-nominated trustees as a proxy for member voice. 

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“Structured, independent feedback mechanisms, such as member experience dashboards and verified surveys, would provide more robust and representative insight.”

He said: “When it comes to oversight of course The Pensions Regulator should be properly equipped, but there’s no need to duplicate existing frameworks. 

“We don’t need two regulators doing the same thing badly. What we need is targeted, early intervention before problems escalate into member harm.

“This consultation is a genuine opportunity to raise the bar, but it will only work if reforms reflect how administration risk actually arises at scheme level, not just how it looks on a whiteboard.”

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He added: “Reforms must remain proportionate, outcomes-focused, and grounded in the practical realities of administering pensions in today’s environment.”

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