Pensions Regulator Lays Its New General Code Before Parliament

On January 10, 2024, the Regulator confirmed that its long-awaited new General Code had been finalised and laid before Parliament. It should come into force on March 27, 2024. Schemes are required to have an effective system of governance (ESOG) in place, which includes developing a risk management function and a remuneration policy. Schemes with 100 or more members will also need to develop an own risk management (ORA) system, which will assess the effectiveness of the ESOG and aim to mitigate potential risks to the scheme.

The content of the finalised Code is largely the same as that in the original draft published in March 2021, with some keys changes as set out below:

• The timetable for schemes to produce the ORA is more flexible. Schemes will have at least 2 years from the time the Code comes into force to complete their first ORA. After that, the ORA will need to be completed every 3 years, instead of annually as proposed initially.