This forms a vital part of the current regulator campaign focused on improving standards in scheme governance and administration.
The new guidance aims to ensure that trustees, especially of smaller schemes, have the tools to perform their critical role in protecting pensions, particularly in the current economic climate.
The implementation of robust internal controls is a legal requirement for trustees and the failure to put processes in place can result in scheme members being exposed to the risks associated with poor record-keeping, inappropriate investment allocation and conflicts of interest in trustee boards.
The revised guidance, which provides assistance with key governance areas like trustee knowledge and understanding, conflicts of interest, record keeping, employer covenant, and investment, applies to all schemes but pays particular attention to trustees of smaller schemes where there is a recognised need for greater support.
Both the e-learning modules and the guidance reinforce the key message in the code of practice - that trustees must have processes in place to identify and manage the most critical risks in their scheme.
Chief executive Tony Hobman said:
"Good governance underpins secure pensions - which is important because scheme members entrust their pension savings into the hands of others.
"Our focus on governance aims to enable all pension schemes to be more effective at managing risk.
"Robust internal controls are key to good governance, and this is why we are placing so much emphasis on clarifying our expectations of trustees in this area.
"We hope that our updated guidance will provide trustees with new insight into the importance of risk management and internal controls and that this will help them fulfil their broader legal governance obligations."
The draft revised guidance will replace the existing guidance and should be read in conjunction with the code of practice on internal controls. Responses to the 12 week consultation should be submitted by 1 March 2010.
To view the press release: http://www.thepensionsregulator.gov.uk/whatsNew/pn09-18.aspx
Media relations
The Pensions Regulator
amediarelations@thepensionsregulator.gov.uk
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