PASA welcomes today’s consultation from the Department for Work and Pensions (DWP) on strengthening regulatory oversight of trustees and pension scheme administration. The consultation, which includes a dedicated chapter on administration, recognises both the critical importance of high-quality administration and the positive contribution PASA continues to make in raising industry standards.
PASA is pleased to see explicit acknowledgement of the role its Standards, Guidance and Accreditation framework play in supporting good governance and driving consistent, high-quality administration across the sector. However, the consultation highlights not all administrators have yet achieved PASA Accreditation.
David Fairs, PASA Chair, said: “We welcome the DWP’s focus on the regulation of trustees and administrators and its recognition of administration as a central Profession within pensions. PASA has long championed the importance of high-quality administration, and our Standards and Accreditation framework offer a proven, effective and continually updated mechanism for raising capability and accountability across the industry.
We believe the right approach is for more schemes and administrators to seek PASA Accreditation, rather than introducing a new state-run accreditation system which may be slower to adapt to market developments or emerging risks. We remain committed to working closely with DWP and The Pensions Regulator (TPR) to ensure our Standards remain aligned to regulatory expectations, including the General Code, and continue to evolve in step with industry needs.”
The consultation also highlights the importance of ensuring an orderly and well-managed transition in the event of an administrator failure. PASA strongly supports this focus and has already begun work with the PPF and TPR to help establish practical frameworks for managing a potential disorderly exit.
Fairs continued: “The risk of an administrator exiting the market without a clear transition plan is a real concern, with significant implications for member outcomes, data integrity and scheme continuity. PASA is actively engaging with the PPF and TPR to map out how best to mitigate these risks and ensure, should such an event occur, members are protected and disruption is minimised.”
PASA will submit a formal response to the consultation and will continue to collaborate with DWP and TPR on the future shape of administration oversight. The association also reiterates its support for the growing regulatory recognition of administration as a core professional function, with competency, governance and data quality at its centre.
ENDS
