What is a master trust?
Governance of master trusts
Choosing a master trust provider
The market is relatively new and evolving and appointments seem to be concentrated on a small number of independent trustees. In this context, employers should investigate the following:
• experience of DC master trusts and a robust succession plan for the named trustees
• adherence to the ICAEW’s Assurance Framework
• how the master trust can meet the needs of district employee groups. For example, can the employer set their own investment strategy for their own employees?
• the existence of employer forums.
In practice, the choice of master trust provider may be subsidiary to the choice of the provider, as employers may be focused on other issues such as:
• member experience and communications
• investment options
• administration capability.
But who acts as trustee, and their approach to governance, may critically impact on member outcomes and should also be a key factor in comparisons made.