Administration or Software Providers
Technology is changing the face of communication and becoming increasingly important to pensions schemes. We are now seeing that some service providers, whether it is administration or software are not moving at the same pace as others.
It is very important to scheme members and trustees that their administration service is provided in a timely and accurate fashion. This is particularly true in DC schemes where delays can cause losses of money and any errors in the records can prove difficult and costly to rectify.
There are now DC administrators who have direct links into the systems of a number of fund managers. This means that data does not have to keyed in, which in turn means quicker turnaround and fewer errors. If the administrators also have a web based service this can mean that a members instruction is also input directly into their systems, further increasing the speed and accuracy of the transactions.
Whether it is carried out in house or by a third party, Trustees need to monitor and regularly review the scheme’s administration to ensure that it carried out punctually, accurately and cost effectively.
Please contact us if you would like to discuss this in more detail.
My View
The role of Investment consultants can broadly be split into to areas - investment strategy and manager selection. In general manager selection naturally follows on from the strategy that is set by the trustees.
With detailed analysis of recommendations and subsequent monitoring of the strategy Trustees will a better chance of being sold unnecessarily complex and expensive investment solutions.