We first announced in October 2020 the publication of a code of practice setting out rigorous new standards for professional trustees carrying out sole trustee appointments.
The code of practice for Professional Corporate Sole Trustees (PCSTs), came into force on 1 January 2021, and set out a range of governance and risk controls that sole trustee firms must adhere to, in order to ensure that scheme members’ interests are properly protected.
These include a requirement for at least two accredited professional trustees to be involved in PCST decision-making processes, as well as new measures to ensure that PCSTs assess whether they should report to The Pensions Regulator if they are removed, or resign, from an appointment as a result of the sponsor company’s actions.
Updated Code implemented from 1 January 2026
The code has been the subject of a review over the past 2 years and following a consultation with members it has been updated with effect from 1 January 2026. A copy of the updated code can be found here. This bolsters the APPT’s existing professional standards code, which all accredited professional pension trustees must follow.
Developed in consultation with The Pensions Regulator, the PCST code sets out how accredited professional trustees should ensure that their firms adopt robust governance protocols to manage potential conflicts of interest for PCST appointments and maintain independence from the sponsoring employer. The updated PCST code has been shared with TPR.
Firms are asked to maintain due diligence procedures around PCST appointments, as well as putting in place measures to document how adviser appointments are made fairly and ensure that consideration is given to ensuring diversity and inclusion in decision-making processes.
A copy of the 2021 Code is here for information