The Association of Professional Pension Trustees (APPT) Council and the Pensions Management Institute have launched a joint consultation into the introduction of a Pension Trusteeship diploma.

The proposed diploma would help independent professional trustees demonstrate they are able to meet the increasing demands and challenges of the 21st century trusteeship.

Trustees need an increasing amount of expertise as the role becomes more demanding and world of pensions evolves.

It is particularly challenging for professional trustees who advise one or a number of pensions boards.

Kevin LeGrand, PMI president, said now is the right time to introduce a formal qualification.

He said: "The role of trustees has never been more important than it is now – with auto-enrolment we have an ever-increasing number of members reliant on well-run pension schemes, but at the same time more schemes are finding themselves in deficit."

"The role of the independent trustee has changed over the past decade to the point we're at today, where trustees have the future retirement prospects of members in their hands."

"The time is now right to set a new benchmark of transparency and governance for professional trustees."

A working group from the PMI and the APPT worked collaboratively to develop the proposal for the diploma, which will meet the needs of the profession and is a recognised qualification in its own right.

The diploma has been welcomed by the Pensions Regulator.

Andrew Warwick Thompson, executive director for regulatory policy, at the Pensions Regulator said: "We expect higher standards of professional trustees now and this qualification would help professional trustees demonstrate their knowledge and commitment."

"Effective trustee boards form the backbone of a healthy pension system where the board as a whole has sufficient knowledge and skills to manage schemes effectively and we firmly believe that boards work best when there is a diverse mix of motivated trustees – lay and professional - with a balance of interests, skills and personalities with a strong chair to lead, guide and challenge their thinking."

Ian Pittaway, chairperson of the APPT council said: "This is an important step forward for those who provide professional independent trustee services."

First published 30.06.2016

Lindsay.sharman@wilmingtonplc.com