2nd Oct 2019 16:55
(Alliance News) - STM Group PLC on Wednesday said the Carey Workplace Pension Trust has been authorised as an approved master trust by the UK's pension regulator.
Carey Workplace Pension Trust is now approved "for the continuing acceptance of auto-enrolment contributions from the UK market".
The master trust is currently administered by Carey Corportate Pensions UK Ltd, part of one of the units STM acquired in February when it bought Carey Administration Holdings Ltd for GBP400,000 in cash. Carey Administration in turn owns 70% of Carey Pensions UK LLP and 80% of Carey Corporate Pensions UK Ltd.
The requirement that master trusts obtain authorisation from The Pensions Regulator was introduced in October, "effectively closing the door to applications from existing Master Trusts on 31 March 2019" according to STM. Only 39 applications were received, while the initial population was more than 80.
STM is forecasting further market consolidation, which could help it to expand its membership.
STM Chief Executive Alan Kentish said: "The authorisation of the Carey master trust is an important milestone for us, and I would like to thank the whole team for their hard work and diligence in pulling the application together. The auto-enrolment membership is clearly an ever-growing population, and for those master trusts still able to accept new business it is an exciting proposition. I believe that there are opportunities for the medium sized master trusts, such as Carey, to offer tailored solutions to the intermediary advisor or asset managers' client base; or indeed directly to the employers themselves.
"Authorisation of the Carey master trust unlocks, in principle, a healthy pipeline of transfers to us that were pending the conclusion of TPR authorisation process.
"With the forthcoming name change and re-brand of the Carey SIPP business, sitting alongside a relaunch of their bespoke SIPP products, this feels like another positive step in building our UK presence."
Shares in STM closed down 1.2% at 43.00 pence in London on Wednesday.
By Anna Farley; [email protected]
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