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Mark Hyde Harrison argued that the launch of up to six super trusts would allow the "institutionalisation" of the DC market, warning that it would produce "much worse" results if it remained in the hands of retail providers after auto-enrolment. Hyde Harrison was outlining his vision for the future of the UK pensions landscape, and once again highlighted his organisation's wish to see the creation of larger DC plans in order to improve governance and allow for a more diversified investment approach.
The organisation first put its super trust proposals forward to the Adair Turner-chaired Pensions Commission, whose recommendations led to what became the National Employment Savings Trust (NEST).
The chairman said current trust-based occupational DC schemes were "just not going to be able to meet the governance, cost and certainty marks" to compare favourably with those a super trust could offer. "The regulator might well get a power saying 'you've got to meet these standards, and if you can't, you've got to transfer your benefits over to one of these super trusts, where member benefits are going to be well looked after'", he said.
Hyde Harrison's proposal echoes changes to the superannuation system in Australia, with Challenger chairman, Jeremy Cooper, highlighting new regulatory powers introduced in the wake of an eponymous review of the retirement system.
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