The Pensions Regulator has issued a consultation document relating to its draft guidance on conflicts of interest.
Conflicts of interest may arise when trustees’ duty to the pension scheme conflicts with their personal interest or their duty to another party (eg the employer). This draft guidance is intended to help trustees assess the adequacy of the governance arrangements that they have put in place to manage conflicts of interests.
As well as the draft guidance, the Regulator has also provided an example of:
- a register that may be maintained by a trustee for the purpose of identifying and recording conflicts;
- a declaration that can be made by an elected trustee prior to appointment; and
- a policy/procedure document outlining the process for identifying, monitoring and managing conflicts.
The consultation closes on 30 May 2008.