ITM welcomes the new Regulator Record Keeping Consultation Proposals

04-Feb-2010

ITM, the market leading independent data and administration consultant welcomes the new proposals issued for consultation by the Regulator on 3rd February. ITM sees this next step as a further drive helping to improve data quality and mitigate data risk, leading to an improvement in the overall standards of pension administration.

Speaking at a recent industry conference, ITM Director John Broker pointed out that the number of complaints received by TPAS had risen with the biggest single issue being due to pension administration mistakes and delays.

‘This is just one of the key reasons ITM fully supports the Regulator’s move towards a more stringent enforcement of data standard – a cause ITM has championed since it’s foundation 7 years ago. The new proposals in the Regulator consultation document are the strongest to date and propose that meeting standards for ‘Common data’ will be enforced. ITM will be reviewing the implications for this and responding to the consultation on how this can be effectively enforced and the degree to which trustees should seek an independent data risk audit in their efforts to comply.

ITM undertook an independent survey into data risk at the end of last year and will be releasing the findings very shortly. The results of the survey are enlightening and bear out the need for the Regulator to take a more directive approach on meeting minimum data standards.

ITM also regard many other aspects of the consultation proposals worthy of further consideration and discussion. These include:

  • the proposed method of testing ‘Conditional Data’. Can this matter be left free of regulation and still be expected to improve?
  • How the proposed differentiation between “legacy” and ‘new’ data will actually operate. Does the regulator really think ALL legacy data issues can be “fully addressed” by 2012?
  • How will the new proposal be adopted for pension provision in the insured community where the link to a cost-bearing sponsor is somewhat weaker?

The Regulator is making every effort to improve governance, administration and internal control standards and this specific Record Keeping proposal combined with higher emphasis on trustee education and enablement is very encouraging for all members of pensions schemes who will (eventually) benefit from increased certainty over what their pension will be.

The challenge now is to ensure that the consultation results in workable solutions which are economic and enable trustees and providers to comply objectively without conflicts of interest and with data testing producing meaningful results that add value rather than tick boxes.

Further information is available at www.itmlimited.com