TPR has updated its guidance to help DC schemes comply with new regulations designed to ensure they consider all the investment opportunities available to achieve best value for savers.


From 1 October 2023 trustees must state their policy on investing in illiquid assets in the statement of investment principles for their scheme’s default arrangements.

  • Illiquid assets are those that cannot easily or quickly be sold or exchanged for cash and include any such assets held in a collective investment scheme.


Chair’s Statement 

  • Trustees will also be required to disclose the asset class breakdown for each of their scheme’s default arrangements.
  • The new regulations have also made changes in respect of performance fees.
    • Schemes must disclose in their chair’s statement any performance-based fees incurred in relation to each of their default arrangements, calculated as a percentage of the average value of the assets held in those defaults.
    • Since 6 April 2023, trustees have had the option to exclude specified performance-based fees from the list of charges falling within the regulatory charge cap limit of 0.75% per annum.
    • Trustees must robustly assess the extent to which these fees represent good value for their savers alongside other costs and charges.

Relevant Guidance updated: