Automatic transfers consolidating pension savings
The day-to-day investment decisions, eg which individual investments to hold, are delegated to investment managers.
This structure can work well, provided that the trustee board is able to devote enough time and skill to the scheme investments, and is able to convene quickly to make decisions if required.
Your governance structure should strike an appropriate balance between speed of action, and checks and balances to ensure that actions are appropriate.
A simple investment structure might involve four parties: the trustee board, the investment consultant, the legal adviser and the investment manager.
The guides aim to provide you with practical information, examples of approaches you could take and factors to consider.
If you’re unsure about these requirements generally, you should undertake relevant trustee training.You may wish to prepare a high-level summary of the governance arrangements, explaining in a few key points what they are and why they have been chosen.This could form part of the scheme’s statement of investment principles (SIP) (see the guide on communicating and reporting for more information on SIPs), or be part of a larger, overall governance plan.Regardless of the investment governance structure in place, all the involved parties need to be clear on areas where they make decisions, provide oversight, or give advice.Clear terms of reference are important for any subcommittees, as are documented service level agreements with providers (see also the guide on scheme management skills).