On 1 December, the Pensions Regulator published revised internal controls guidance for consultation, alongside new "bite-sized" e-learning modules which provide an overview of the topic. Both are aimed at focusing greater attention on risks facing scheme members and are part of the Regulator's campaign to improve standards in scheme governance and administration. The guidance is aimed primarily at trustees of small schemes.
Section 249A of the Pensions Act 2004 contains a requirement for trustees to establish and operate internal controls which are adequate to secure that the scheme is administered and managed in accordance with its rules and legal requirements. This is supplemented by the revised guidance, which is more prescriptive than its predecessor, and covers "key governance areas" including trustee knowledge and understanding, conflicts of interest, record-keeping, the employer covenant and investment.
The guidance can be accessed on the Regulator's website here