The Master Trust Association (MTA) has been launched this week in order to promote best practice within master trusts and to ensure UK providers get a unified voice.

The new association will aim to improve and maintain standards of governance in order to optimise member outcomes. It will also work to promote the benefit of using trusts and to educate the wider pensions market.

Of particular concern for the association is the 'pot follows member' issue. The MTA says that while it recognises the arguments in favour of consolidation, it also recognises there are circumstances under which such a solution may lead to member detriment.

The MTA is currently open to membership and has already secured members from a wide cross section of providers such as B&CE, Blackrock, BlueSky, Legal & General, National Pension Trust (Xafinity), NOW: Pensions, Pensions Umbrella Trust, Salvus, SEI, Standard Life, SuperTrust and The Pensions Trust.

Morten Nilsson, CEO of NOW: Pensions, says: "The Master Trust Association will provide a voice on issues that are vital to the successful development of the UK pensions industry, including the 'pot follows member' proposals, managing conflicts of interest, and creating a quality standard to ensure schemes are fit for purpose, as recommended by the Pensions Institute's Caveat Venditor report.

"We believe the strength of having a collective group will provide the force required to change the UK industry for the long-term, for the benefit of those who we are here to serve - those people saving with us for their long-term financial security."

First published 08.11.2012
azeevalkink@wilmington.co.uk