The Regulator has published a discussion paper on the governance of work-based pension schemes. The paper identifies the following main priorities for the regulation of pension scheme governance:
- knowledge and understanding;
- conflicts of interest;
- monitoring of employer covenant;
- relations with advisers;
- process for investment choice; and
- governance during wind-up.
The paper highlights some areas of good practice, explains what the Regulator is already doing and suggests where there is potential for further action. Examples of good and bad practice are illustrated by case studies. The paper is aimed primarily at the trustees of pension schemes and their advisers. Comments are invited by 13 July 2007.