Barnett Waddingham respond to new TPR trustee code of practice

The Pensions Regulator (TPR) has today launched a consultation on the draft content for a new code of practice (COP) which will replace 10 of the existing codes for trustees. 

Sara Cook, Principal at Barnett Waddingham, believes the new COP will support trustee decision-making.

Sara Cook said: “The launch of the new code of practice consultation gives trustees a first glimpse of the governance wake-up call that is coming their way. Is this the biggest change to pension scheme governance in the last 15 years? We’ll have to wait and see; the new code of practice does make it clear that trustees may need to expand their risk assessments to meet the Pensions Regulator’s expectations.

"With new sections on Stewardship and Climate Change we can see an increased focus on trustees’ effective investment governance as the UK economy transitions to net zero by 2050. Better informed trustees can better manage their scheme’s exposure to climate change risks, and be in a better position to take advantage of investment opportunities that emerge during the transition to a low carbon economy.

“We welcome the benefits that implementation of these requirements will bring in terms of supporting trustee decision-making and better member outcomes.”