The Regulator has issued for consultation a revised draft code of practice on trustee knowledge and understanding and three scope guidance documents (for DB schemes with DC arrangements; DC schemes; and a new version for fully insured DC schemes with 12-99 members). Consultation closes on 31 December 2008.
The Regulator is of the view that TKU should remain as an individual trustee requirement; it was suggested by the deregulatory review that the requirements should apply to the trustee board as a whole, so that it would be sufficient for only one individual on the board to have the relevant knowledge and understanding on each issue.
The proposed changes to the code include:
- strengthening the importance of delivering effective learning
- how the Regulator will check up on TKU.
The scope documents have been tidied up and reordered, and changed to reflect:
- the importance of good administration
- the Personal Accounts regime
- developments in investments and buy out
- employer covenant issues
- recognising the possibility of wind up and preparatory steps.