Pensions Regulator includes additional questions on liquidity and leverage arrangements on DB and hybrid scheme return

The Regulator has updated the questions in the DB and hybrid scheme return for defined benefit and hybrid pension schemes

New questions have been added for this year's return relating to:

• The appointment of fiduciary managers and investment consultancy providers. This is to enable the Regulator to monitor compliance with requirements for trustees of relevant trust schemes to run a competitive tender process when appointing fiduciary managers in relation to 20 per cent or more of scheme assets and to set (and review) strategic objectives for their investment consultancy provider. This is the facility for the Regulator to collect the relevant information originally mandated by the Competition and Market Authority’s 2019 Order.
• A scheme's liquidity and leverage arrangements and the controls in place. This follows guidance published by the Regulator in April 2023 outlining the steps trustees could take to manage risks when using leveraged liability-driven investment.

The scheme return will also ask for the scheme's pensions dashboards primary contact and information about AVC providers. The Regulator will send the scheme return notice to DB and hybrid schemes in late January or early February 2024. The return must be completed and returned by March 2024.