Data problems suffered by schemes are down to advisers withholding information and issues from trustees in fear of it jeopardising their appointment, a pensions actuaries and administration specialist has said.

Spence & Partners said that trustees are unaware of legacy data issues that exist when there is a transition of scheme information between advisers.

Mark Johnson, Spence & Partners head of data audit and analysis, said as part of the procurement process schemes are offered free data cleanses and audits, however this is often put aside while the bigger transaction takes place, and unresolved issues are later transferred to the new adviser.

However the new adviser is reluctant to raise data issues further down the line, because it would highlight the work they had undertaken as agreed, Johnson explained.

"This is happening a great deal in the industry and affected trustees are unaware," said Johnson.

He added: "If the trustees are being kept in the dark they may think they are in a stronger position than they actually are and could be unwittingly failing in their governance duties.

"To avoid this, trustees should be challenging their advisers far more and not be put off by paying for data cleanses. Although data cleansing exercises can have sizeable cost implication for schemes, trustees will actually reap the rewards as they will gain efficiencies in other areas."

First published 17.05.2013

monique_simpson@wilmington.co.uk