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.

Objective

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.

Key duties

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 6th September 2016.

Members of Fidelity’s Independent Governance Committee

Kim Nash – Independent Governance Committee Chair
Kim Nash is a Client Director at Pitmans Trustees Ltd (PTL). She joined PTL 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.

Rachel Brougham – Independent Member
Rachel Brougham is Trust Executive at BESTrustees PLC. Prior to this, she worked at Mercer as a Principal for 26 years. Rachel has a wealth of experience in exercising independent and effective governance oversight of pension arrangements, either as a member of a pension fund trustee board or a pension provider's Independent Governance Committee.

David Felder – Independent Member
David Felder has over 30 years experience of working with pension funds in both the public and private sectors. He has worked for Morgan Grenfell (now Aberdeen Asset Management) and then Kleinwort Benson as Head of Fixed Income. More recently, David was Head of Investments in London for Daiwa SB Investments, a joint venture between two of Japan’s largest financial organisations, Daiwa Securities and Sumitomo Bank. David is a fellow of the Chartered Institute for Securities and Investment.

Julian Webb – Fidelity Representative
Julian is Head of Workplace Investing. Julian leads the overall strategic and corporate management of our DC businesses in the UK. Julian joined Fidelity in 2004 as Head of UK DC Business Development and later became Head of the UK DC Business. He has over 25 years’ experience in the corporate pensions market.

Paul Mason – Fidelity Representative
Paul Mason joined Fidelity in 2008 and has over 20 years financial services experience. He has held a number of roles prior to becoming Director, Strategic Projects. Paul is a Director of FIL Pensions Management, 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 after he qualified as a Chartered Accountant with Deloitte.