The Relevant Trustee AAF 02/07 is used to create a specific assurance standard for Professional Pension Trustee firms (Relevant Trustees).The Relevant Trustee AAF 02/07 TECH 04/13 has been adopted as a quality standard for sole trusteeships by the Association of Professional Pension Trustees (APPT) whose principal objective is to act as the representative body of trustees of UK Occupational Pension Schemes who fall within the Pensions Regulator’s (tPR) description of a Professional Trustee.
In October 2020, the APPT announced a new APPT PCST Code of Practice that became effective from 1 January 2021 for Professional Corporate Sole Trustees which included obtaining a Relevant Trustee AAF 02/07 assurance report for the Professional Trustee firm.
The code sets out how members should satisfy themselves that their firm has appropriate governance and risk controls in place to meet the additional requirements for Sole Trustee appointments.
The code, which will be reviewed on an annual basis, is principles-based and for the PCST firms to determine the detail, as they see appropriate, in their own processes and procedures.
Robust governance protocols to ensure that they manage potential conflicts of interest effectively and maintain independence from the sponsoring employer.
These include, for instance, maintaining a Sponsoring Employer Independence Policy, as well as assessing whether to report to tPR if they are removed, from a PCST appointment as a result of the actions of the sponsor procedures to ensure that they can evidence that adviser appointments are not influenced by business or personal relationships between the firms involved.
Under the code, PCST firms should implement due diligence procedures to ensure that they properly document their appointment as a PCST for a scheme and can show that they have considered whether it is appropriate to accept the appointment processes governing how decisions are taken and recorded.
Get in touch for further information on how to obtain a Relevant Trustee AAF 02/07 report with independent assurance.
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