What is the MTB?
The MTB is responsible for ensuring that the scheme is run in accordance with the scheme rules and relevant legislation.
The Board is made up of five individual trustees, the majority of whom are independent, including the Chair.
Several of the MTB members also sit on the Independent Governance Committee [IGC]. Fidelity strongly believes in consistency across products and when it comes to resourcing both the MTB and IGC. This allows the same high level of governance and assessments to be applied consistently to all members.
The members of the MTB have extensive knowledge, insight and experience within the pensions and finance industry.
Role of the MTB
- Subject to Trust law and trustee obligations
- The Master Trust Board is based on a similar model to current trustee boards for trust based schemes, whereby they have specific powers and responsibilities defined within their scheme rules which, for example, include
- Managing the scheme’s investments including taking advice as appropriate
- The scope to select and appoint advisers / service providers
- The power to remove advisers and service providers
- The scope and power to amend the scheme
- Power to terminate or wind up the scheme
- The Master Trust Board can enforce changes when required.
Fidelity Master Trust legal structure
Fidelity is the scheme sponsor and is responsible for setting up the Master Trust (including documentation relating to the same) and appointing the Trustees. The structure and governing documentation is shown below. Fidelity will carry out ongoing informal reviews of the appointed trustees to ensure appropriate standards are, and continue to be, met. Trustees are appointed for a fixed term of office of up to five years, subject to a ten year cumulative maximum.
Fidelity Master Trust governance structure
Governance of the Fidelity DC Master Trust is carried out in line with PTL’s Governance Platform which has been adapted and agreed by the Trustee Board.
Areas of focus for the MTB
- Reviewing the default investment strategies in light of the budget flexibilities.
- Reviewing the scope and content of member communications in light of the budget flexibilities.
- Determining the issues to be considered in assessing ‘value for money’ (VFM).
- Considering the process for obtaining member feedback.
- The Trustee Board Governance is in line with the Pension Regulator’s DC Guidance, six elements and six principles.
- The Regulator’s approach to the regulation of DC trust-based pension schemes is outlined in their Code of Practice 13: Governance and administration of occupational defined contribution trust-based pension schemes.
- The code is concerned with providing “good member outcomes”. The Regulator has outlined the following six elements which they believe good member outcomes depend on:
- Appropriate contribution decisions
- Appropriate investment decisions
- Effective and efficient administration
- Protection of assets
- Value for money
- Appropriate decumulation decisions
- The MTB have completed their own assessment of how the master trust meets the Pension Regulator’s governance requirements and this is monitored on a regular basis.
Members of the Fidelity Master Trust Board
Kim Nash – Independent Chair of the Trustees
Kim Nash is a Director at PTL Governance Ltd, which she joined in February 2012. Kim is a qualified Actuary and previously worked for Towers Watson as an actuarial benefit consultant. She has significant DC trustee experience with DC Master Trust (DCMT), single employer trusts and hybrid schemes. Kim also sits on governance committees for contract based arrangements.
Dianne Day - Independent Trustee
Dianne Day is a Client Director at Independent Trustee Services Ltd (ITS). She joined ITS in 2015, specialising in defined contribution (DC) schemes. Dianne holds the PMI Certificate in DC Governance and is a Fellow of the Financial Services Institute of Australasia. Her trustee experience spans DC master trusts, single employer schemes and sole trustee roles. Dianne applies over 30 years’ experience in investment management and member communications to the good governance of members’ pension benefits.
Gerald Wellesley - Independent Trustee
Gerald is a Professional Trustee and Client Director of Punter Southall Governance Services Limited. He has over 35 years’ experience in the finance industry, 15 years as pension trustee and 3 years in HR management.
His current portfolio of trusteeships includes chair, sole trustee and subcommittee positions with DB and DC schemes and DC Master Trusts. He brings strengths in the investment and financial management disciplines together with more broadly-based trustee skills. He was previously at BNY Mellon where he led the corporate strategy for the UK and European pensions industry where BNY Mellon is a leading provider of asset management, custody and collateral management services.
Marianne Jaekel – Fidelity Representative
Marianne Jaekel is a qualified solicitor and joined Fidelity in 2012 as Head of UK DC Legal Services. Marianne has responsibility for all legal aspects of the DC business, including contract negotiation and management, product development and advising key stakeholders on day to day legal issues from both a commercial and technical perspective.
Prior to joining Fidelity Marianne gained 13 years of experience as a City lawyer, having qualified at Travers Smith and most recently practising as a Senior Associate in the Pensions team of Squire Patton Boggs (previously Hammonds). Marianne is a full member of the Association of Pension Lawyers.
James Carter - Fidelity representative
James Carter is Head of Pension Products and Policy with 19 years of experience in the workplace pensions market. He is responsible for the product implementation and management of Fidelity’s workplace pension products. James also leads Fidelity’s engagement with the government, regulators and industry bodies in the development of pension policy and the business’ analysis of the impact and opportunities of new pensions regulations.
Prior to joining Fidelity James was a Director in Willis Towers Watson’s pension consulting business, having also worked for KPMG and Aon, advising trustees and employers operating large DC pension schemes.