The Pensions Regulator’s General Code will finally become effective tomorrow, 28 March 2024. Beth Casinelli explains how Deloitte Legal’s tech tool Compliance Capture will help scheme trustees meet the requirements. 

What’s new?

Given the delays in implementing the General Code, there were concerns within the pensions industry that the final version of the General Code could be very different from the original draft in March 2021. The version released in January 2024 does contain updates, including to address concerns raised through consultation, and a number of organisational changes - but the salient content, requirements and tone remain largely the same. Notable amendments include: 

• Module changes – representing a reorganisation to reflect the day-to-day realities faced by schemes and the removal of some unnecessary ‘stand-alone’ points; 
• ORA – the annual ORA requirement has been scrapped, meaning that instead schemes will be able to carry out an ORA in part or in whole on a rolling basis according to their own timetable - provided that it is carried out completely at least every three years;
• Managing advisers and service providers – the review period has been extended to three years, from two, reflecting practice and allowing service providers better opportunity to ‘bed in’; 
• Remuneration – the Trustee Remuneration policy has been made less prescriptive in scope (and therefore can be more scheme-specific). The policy is now expected to be a framework for value assessment, rather than for the disclosure of specific remuneration figures, and the requirement to publish the policy has been removed; and, 
• Cyber – the 2018 Code of Cyber Risk is now incorporated within the General Code. Reflecting the world the General Code will operate within, there is a change in focus to reducing risk in the case of cyber-attack (rather than preventing them). Reliance on third parties for cyber expertise has been reframed as being acceptable (in reflection of day-to day practice), but is not mandated (as in previous drafts).

What do schemes need to do?

Now is the time for schemes to evaluate their current processes and systems, in order to bring themselves into compliance with the General Code. 

Can Deloitte help? 

Deloitte Legal has developed Compliance Capture, a gap-analysis tool designed to enable trustees to comprehensively cross check their compliance with the requirements in the Pensions Regulator’s new single Code of Practice and covers all areas of the Code.

The survey is broken down into bite sized modules, to enable trustees to complete the questionnaire at their own pace. Responses are typically ‘Yes/No’ or ‘1-10’ scale. All trustees are provided with their own link, so that they can each answer the sections relevant to them (for some, all sections may be applicable, but there may be circumstances in which one individual is better placed or where the module is better answered by someone else (e.g.: the Scheme Administrator answering the section relating to administration).

Once the survey is completed, a report is generated based on the answers provided. This report includes an ‘Executive Summary’ (around 2-3 pages) summarising the key issues flagged up and top priorities, and including guidance from the team at Deloitte Legal, and a ‘Main Body’, which is much more detailed, including full analysis and graphical analysis around the responses provided and flags of ‘outlier’ negative responses.

Once the trustees have had some time to digest the report, our team of legal specialists provide verbal feedback based on the report’s findings during a one-hour consultation with the trustees. This looks to provide practical and professional advice on actions which need to be taken to ensure compliance.

In order to help trustees prioritise outstanding tasks, request work, and keep a track of actions and priorities, access is also provided to LegalHub – a management portal where upcoming, outstanding and important tasks are and can be prioritised, flagged and diarised and further work can be requested. This portal also provides the ability for the trustees to store copy documents of the evidence confirming compliance with the requirements of the General Code (such as policies, procedures, reports and statements.

Contact Deloitte Legal for more information.

Content from the Deloitte Legal blog can now be sent direct to your inbox. Choose the topic and frequency by subscribing here.