Several asset managers and other financial services firms have joined forces and launched the Master Trust Association to lobby for the industry's interests.
In a statement, the association says it recognises the arguments in favour of consolidation of small pension pots but warns an automatic “pot follows member” solution may lead to member detriment.
It also proposes to develop a code of best practice for its members and says it aims to provide products that provide a high standard of governance, coupled with fair charging.
Its members represent B&CE, Blackrock, BlueSky, Legal & General, National Pension Trust (Xafinity), NOW: Pensions, Pensions Umbrella Trust, Salvus, SEI, Standard Life, SuperTrust and The Pensions Trust.
Among the association’s stated goals are improving and maintaining the standards of governance; promoting the benefits of master trusts and educating pension funds; and sharing best practices.
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