Independent Governance Committees
We can help IGCs and organisations meet their regulatory requirements.
How we help you
Our advisory services include:
- annual reports
these demonstrate how you have acted in the organisation’s best interests and how it has performed against core quality standards
- independent assurance and scrutiny
of the design and description of related internal controls
- governance and assurance
to help you test quality standards
- assessing investment strategies
supporting your oversight of the value for money of the schemes
- reviewing account transaction costs
and making recommendations
We also advise you on the scope of regulatory changes and impact.
We help Independent Governance Committees respond to changes in the contract market.
About Independent Governance Committees
From April 2015, firms providing workplace personal pension schemes (contract-based arrangements) must have an Independent Governance Committee (IGC) in place to ‘act in the interests of relevant policyholders’ and to provide credible and effective challenge on value for money offered to members by the firms contract based arrangement(s).
These duties include:
- assessing of value for money in terms of the quality of key areas of governance, e.g. the design and execution of the investment strategy and administration of the scheme including member communications, measured against the cost to members
- escalating concerns where issues relating to value for money are identified
- producing an annual report which addresses duties covered in terms of reference, both of which will be made publicly available by the firm.
There are also explicit duties placed on organisations, for example, to:
- provide the IGC with all the information it reasonably requests for the purposes of carrying out its duties
- provide sufficient resources to the IGC as are reasonably necessary for it to carry out its duties
- make arrangements to ensure member views can be expressed directly to the IGC.
To fulfil their duties, both IGCs and organisations will want to be confident that they have established systems and controls that mitigate key risks, adopt industry good practices and meet regulatory expectations through having a robust governance framework in place.