Commenting on today’s TPR consultation for a single Code of Practice, Laura Andrikopoulos, Head of Governance Consulting says:

“We welcome TPR’s consultation on the first phase of its consolidated code project which combines 10 of the existing Codes of Practice into a web-based 51 module system and addresses the requirement of the IORP II regulations for all schemes to have an “effective system of governance”. The introduction in the draft code of the term ‘Governing Body’ is a helpful broadening of the usual reference to ‘trustees’ and recognises the increasingly diverse range of pension scheme oversight bodies responsible for good governance of pension arrangements.

“The enhanced focus on the quality of risk management, a consequence of the transposition of the IORP II regulations into UK practice, is particularly welcome. The Own Risk Assessment annual process will bring a much needed focus on current risk management practices which have been under scrutiny in the last year due to the materialisation of a major risk to business continuity in particular (Covid-19).

“It is also pleasing to see enhanced focus on cyber security, a risk many schemes are concerned about, and ESG considerations being more fully embedded into draft guidance.”