Conflicts of interest can arise between fiduciary duties and other personal interests or duties to another party. Trustees, professional advisers and pensions managers all may be affected in their work, hindering discussions or impeding a course of action that may be in the best interests of the beneficiaries. In order to minimise the difficulties when such circumstances arise, the Pensions Regulator has published draft guidance for consultation.

The consultation paper contains information on good governance and the maintenance of adequate control mechanisms, with a view to achieving the Pensions Regulator’s “objectives of protecting members' benefits and promoting good scheme administration”.

Trustees should ensure that their governance arrangements contain a clear policy which identifies conflicts of interests, and management procedures to measure and avoid such conflicts, whether they originate from either an adviser or a trustee.

Responses to the consultation paper must be submitted by 30 May 2008.