Clara welcomes updated guidance from The Pensions Regulator
Today, The Pensions Regulator (TPR) has published updated guidance for DB pension consolidators, or superfunds, in line with its commitment to review its position within three years of publication of its initial guidance. These updates ensure the interim regulatory regime is fit for purpose, and aligns it more closely with the Department for Work & Pensions’ proposals to introduce superfunds legislation, as set out in its response to the consultation on DB consolidation.
As the first DB consolidator to have completed TPR’s regulatory assessment process, we are pleased to see that this update acts as a further validation of Clara’s member-first model. Importantly, the updated guidance continues to provide a robust framework to protect members and includes some flexibility to help ensure consolidators remain resilient in changing market conditions.
Commenting on the updated guidance, Clara’s CEO Simon True said:
“We welcome today’s updated guidance from The Pensions Regulator. The changes the Regulator has made align the interim regime with DWP’s plans for superfunds legislation and provide important clarity to DB pension scheme sponsors and trustees. The changes will also help ensure consolidation is always available as a practical, strong option for DB pension schemes that are unable to afford buyout in the near future. We are particularly pleased to see a recalibration of the risk discount rate, with alignment to market conditions, and the enhanced clarity on the clearance process.”
“Along with the Government’s recent response to its consultation on DB consolidation, we anticipate that this update will continue to build confidence in commercial consolidation and Clara’s model in particular. We are in active discussions with more than 10 schemes, with combined assets of over £4 billion, and we remain confident of progressing with our first transactions soon.”