What is an IGC?
An IGC is an Independent Governance Committee whose purpose is to represent the interests of policyholders (including active and deferred members) in the company’s relevant schemes.
The IGC is made up of five individuals, the majority of whom are independent.
The members of the IGC have extensive knowledge, insight and experience within the pensions and finance industry.
The key objective for Fidelity’s IGC is to act in the best interests of all relevant policyholders by assessing and challenging Fidelity on the ‘value for money’ offered within their UK DC workplace personal pension plans.
The key duties for Fidelity’s IGC are:
- to report to the FIL Life Board;
- to act in the interests of all relevant policyholders;
- to assess the ‘value for money’ of the Company’s UK DC workplace personal pension plans;
- where the IGC has concerns related to ‘value for money’, to raise its concerns with the Board;
- where concerns have been raised with the Board which, in the opinion of the IGC, have not been addressed satisfactorily the Chair of the IGC may, if appropriate and after having given the Board further opportunity to respond, escalate its concerns to the Financial Conduct Authority (FCA) in the first instance. Thereafter the IGC may alert relevant pension scheme members and employers, and make its concerns public;
- to produce an annual report of its findings.
The IGC’s annual report
The IGC has published their second annual report setting out the results of their assessment of whether Fidelity continues to provide Value for Money to their pension plan customers. The assessment looks at different aspects of quality provided by the plan. You can read the full report, which confirms that the assessment concluded that Fidelity’s pension plans continue to offer Value for Money, below.
Focus areas for Fidelity’s IGC
Over the next year, we will continue to monitor the Fidelity pension plans to ensure they offer Value for Money. We are continuing to work with Fidelity on a number of actions:
- Ensuring that any requested information is provided to you quickly and accurately.
- Giving you the right information at the right time, to help you make decisions in relation to your retirement savings.
- Ensuring the investment strategy you are in is designed well and kept up to date.
- Reviewing the development of Systems and controls ahead of an external audit of the administration processes.
- Consider how charges are communicated to you so that you have a better understanding of the impact of costs and charges on your pension saving.
- Collecting transaction cost data and incorporating this within our value for money assessment.
- Role of sustainable investment within the investment options made available to you.
Terms of Reference
The terms of Reference were reviewed and signed off at the meeting on 20th September 2018.
Members of Fidelity’s Independent Governance Committee
Kim Nash – Independent Governance Committee Chair
Kim Nash is a Director at PTL Governance Ltd (PTL). She joined PTL in February 2012. Kim is a qualified Actuary and previously worked for Willis Towers Watson as an actuarial benefit consultant. Kim’s is able to bring her significant DC experience both as a Trustee and a member of governance committee to lead the IGC to develop the value for money framework and make comparisons on Fidelity’s performance against the wider industry.
Rachel Brougham – Independent Member
Rachel is a trustee executive at BESTrustees Limited. Rachel is a qualified actuary and has worked in the pensions industry since 1988. Rachel’s experience includes advising both defined benefit (DB) and defined contribution (DC) trustee boards and the governance committees of various contract-based DC arrangements through which she has built up a detailed knowledge of the regulatory environment.
With Rachel’s previous employer, the global consultant Mercer, she led a number of national initiatives including pension fund governance and risk management (both DB and DC) and pensions automatic enrolment. Rachel uses her governance and DC trustee experience to review Fidelity’s administration service and making sure Fidelity’s communication is effective enough to promote understanding and support member decision-making. Rachel is also the chair of the communications subcommittee.
David Felder – Independent Member
David Felder is a Director of the Law Debenture Pension Trust Corporation (Law Deb). He joined Law Deb in July 2002 as a professional pension fund trustee. David is a Fellow of the Chartered Institute for Securities and Investment and was previously a senior fund manager, specialising in fixed income investment. David applies his extensive investment and trustee experience to help with the monitoring of the performance of Fidelity’s investment funds and the consideration of possible changes to the fund range offered to DC investors.
Daniel Smith – Fidelity Representative
Daniel is Head of UK Full Service - Workplace Investing, leading the overall strategic and corporate management of Fidelity's DC businesses in the UK. Daniel joined Fidelity in 2002 and has over 20 years’ experience in the corporate pensions market. Daniel ensures that the Independent Members of the IGC are provided with all of the necessary support and information to undertake their roles effectively. In addition he ensures that the IGC members have full access to Fidelity resources and are consulted on business strategy and change projects.
Paul Mason – Fidelity Representative
Paul Mason joined Fidelity in 2008 and has over 20years’ financial services experience. He has held a number of roles prior to becoming Director, Strategic projects. Paul is a Director of FIL Life Insurance (Ireland) dac, a Trustee of Fidelity’s Master Trust Board and a member of Fidelity’s Independent Governance Committee. Prior to joining Fidelity, Paul spent 13 years with Lloyds Banking Group.
Paul is a Chartered Accountant and brings strong financial discipline to the role alongside 10 years of DC pensions experience where his focus has been on regulatory matters, operational practices and driving better customer outcomes.
Prior to joining Fidelity, Paul spent 13 years with Lloyds Banking Group after he qualified as a Chartered Accountant with Deloitte.