On this page
- Preparing your application
- Feedback from the readiness reviews
- Multiple schemes and cluster schemes
- New schemes
Preparing your application
If you operate a master trust you will need to demonstrate that the scheme meets the required standards across the following criteria:
- Fit and proper: all the people who have a significant role in running the scheme can demonstrate that they meet a standard of honesty, integrity and knowledge appropriate to their role.
- Systems and processes: IT systems enable the scheme to run properly and there are robust processes to administer and govern the scheme.
- Continuity strategy: there is a plan in place to protect members if something happens that may threaten the existence of the scheme, including how a master trust will be wound up.
- Scheme funder: any scheme funder supporting the scheme is a company (or other legal person) and only carries out master trust business.
- Financial sustainability, including business plan: the scheme has the financial resources to cover running costs and also the cost of winding up the scheme if it fails, without impacting on members.
You will need to submit your application via the master trust portal.
Your application for authorisation must be accompanied by a fee of £41,000. Guidance on how to pay the fee and submit your application will be available from 1 October.
We’ll make a decision on your application within six months of receiving it. For further information, read the master trust decision-making procedure (PDF, 59kb, 7 pages).
Feedback from the readiness reviews
We received 33 draft applications as part of the readiness review process. We reviewed these and provided feedback to the schemes that applied. To help schemes to continue focusing on their final authorisation application, we have put together details of lessons learnt from the readiness reviews.
Multiple schemes and cluster schemes
The requirement to be authorised is at scheme level rather than provider level. Therefore, each scheme needs to be authorised to operate in the market.
Cluster schemes are an exception to the principle of one application per scheme. When you come to apply for formal authorisation, you should treat these schemes as one master trust and make one application for the group. You can read more about cluster schemes in paragraphs 27 to 32 of the draft code.
If you’re planning to set up a new scheme after 1 October 2018, you will need to apply for authorisation of a new master trust.
Pension Schemes Act 2017 on Legislation.gov.uk
Full text of the Pension Schemes Act 2017.
Draft master trust regulations on Legislation.gov.uk
Draft regulations that set out further legal requirements for the authorisation and supervision regime for master trust schemes.