On the go: The traditional trustee board model has been branded “unfit for purpose”, as recent events have shown the importance of reacting quickly to changing circumstances.
Ray Martin, an independent trustee who has previously served in that capacity on the pension schemes of AstraZeneca, NatWest and Deutsche Post DHL, argued for a move towards a model of sole trusteeship at the launch of his new company, HS Sole Trustees.
The venture is a collaborative effort between Martin, Kevin O’Boyle, formerly of the BT and GlaxoSmithKline pension schemes, and Adrian Furnell, an accredited professional trustee.
Sole trusteeship can often better suit the needs of employers where their journey plans require “quick and expert” action to secure member benefits and investment opportunities, Martin argued.
HS Sole Trustees’ goal is to support schemes and sponsoring employers by providing professional sole trustees to achieve endgame, working with existing administrators, actuaries and investment consultants, and “easing the burden of governance, compliance and reporting requirements”, according to a press statement.
Commenting on the launch, Martin said: “The trustee role has never been more complex. Coupled with increased pressure on sponsors and scrutiny from the regulator, it is harder than ever to recruit appropriate member — and even employer — nominated trustees, so we think the traditional trusteeship model is not always fit for purpose.
“For companies with a burdensome and potentially vulnerable scheme, the ability to act quickly and effectively while time is on your side is essential, but not always possible when you have a trustee board with lay members that you need to keep trained and knowledgeable, and can be constrained by its meeting schedule.
“We therefore saw real opportunity for a specialist firm that could do things differently and expeditiously, working closely with the sponsor for the benefit of members.”
Martin continued: “A growing number of schemes have been moving to a sole trusteeship model in recent years but, with HS Sole Trustees, our aim is to offer the sponsor dedicated and accredited professionals who understand the business, can strengthen the sponsor-scheme relationships, and ultimately know what it takes to deliver good outcomes for all parties. And since sole trusteeship is all we do, our team will be independent and completely unconflicted.”
Joining Martin, O’Boyle and Furnell in the new venture are Peter Jones, a 30-year pensions veteran who has provided administration and secretarial services to defined benefit and defined contribution schemes, and Steve Goddard, co-founder of pensions consultancy company Goddard Perry and a director at Pension PlayPen.
O’Boyle added: “Having had lengthy careers working with corporates on both sides of the table, Ray and I know first-hand the challenges of balancing different priorities and interests — and how frustrating it can be when decisions take longer than necessary to be pushed through.
“I am so excited to play my part in improving the current way of doing things and helping more firms secure the benefits for their pension scheme members in the quickest and most effective way possible.”
