The lack of scale among defined contribution (DC) funds in the UK was once again the focus of concern by a regulator, as the Office of Fair Trading (OFT) noted that some schemes had no "realistic prospect" of achieving the size required to benefit members.
The OFT said it would now seek to engage the industry on these and several other concerns. In a statement, it said: "The purpose of these discussions will be to discuss the scope and scale of our concerns, and to consider what action, if any, might be appropriate to address them. Discussions of possible future actions will also consider the relevance of current or existing initiatives undertaken by regulators or the industry."
NAPF chief executive Joanne Segars argued there were currently too many small funds. "While some small schemes are well run, too many struggle to deliver good value for money", she said. Segars called for a "radical reshaping" of the UK pensions market, once again referencing the organisation's preference for a small number of large-scale, super trusts overseen by trustees.
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