Who? The most important decision of all

Selecting a fiduciary manager is one of the most important decisions trustees can make, given the appointee’s pivotal role in setting and implementing a scheme’s investment strategy.

02/06/2019
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Read full reportFiduciary-Management-Who-Most-Important-Decision-June-2019
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Authors

Stephen Bowles
Senior Director - Fiduciary and Consultant Relations

The decision to change a pension scheme’s operating model is a significant one, and therefore requires a substantial upfront investment of time and resource to do the decision justice. However, as a fiduciary management appointment progresses, the reduced governance burden on the trustees acts to offset this initial time investment.

As well as being time-intensive, choosing which fiduciary manager to select can be difficult. There are many fiduciary management styles, and trustees need to decide which decisions to delegate.

Given these issues, there are a number of questions trustees should consider before deciding whether fiduciary management is right for their scheme and embarking on a selection process.

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The table opposite sets out the steps in a typical fiduciary manager selection process, including the essential role of an independent advisor.

Key takeaways

  • A thorough selection process is vital when appointing a fiduciary manager
  • Before starting the selection process, trustees should ensure they consider their objectives and the extent of delegation they are comfortable with
  • The process should include independent advice delivered by a third party
  • A range of independent providers have developed resources to help trustees through the selection process

 

Read full reportFiduciary-Management-Who-Most-Important-Decision-June-2019
0 pages183 KB

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Authors

Stephen Bowles
Senior Director - Fiduciary and Consultant Relations
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