Pension trustees must champion higher standards

Pension trustees must take a more assertive role in lifting product standards across the investment industry, affirms the CEO of one of the world’s largest independent financial advisory organizations, as shifting market conditions increase the importance of structure, governance, and suitability in retirement planning

Nigel Green of deVere Group says trustees are a critical point in the financial system, with the ability to influence the design and quality of the investment products relied upon by millions of savers.

“Pension trustees influence the direction of the entire market,” he says. “The expectations they set determine how products are designed, assessed, and governed.

“When trustees raise standards, the entire industry adapts.”

His call gains significance due to the pressures reshaping the environment in which pensions operate.

Volatile interest-rate cycles, the rapid expansion of complex investment structures, and greater scrutiny of charges have reshaped member expectations.

In addition, retirees face longer periods of income drawdown and must manage risks extending across several decades.

Meanwhile, member engagement has increased as savers demand clearer information and more accountability from those overseeing their futures.  

“These shifts highlight the importance of stronger governance and more consistent product construction.”

The scale of assets managed by pension trustees amplifies the influence of their decisions. Every allocation, product approval, or governance adjustment not only affects member outcomes, but also shapes broader industry behaviour.

Nigel Green says the responsibility attached to this influence has grown steadily as pension systems shoulder more of the burden once carried by state-funded retirement models.

“Trustees operate with long-range obligations,” he says. “They must assess products not only for current conditions, but for how they’ll behave through market cycles and different phases of a member’s retirement.

“This requires strong foundations, clear costs, and resilient structures.”

Recent years have brought valuable innovation across asset classes, investment platforms, and multi-asset solutions. Such developments have widened access and broadened diversification options.

The deVere chief executive acknowledges these advancements while emphasising that innovation alone does not guarantee quality. Variability in transparency, cost discipline, and governance remains a concern, especially as complexity grows.

“Wider choice strengthens pensions only when the underlying products meet high standards,” he says.

He stresses that meaningful progress depends on coordinated action across multiple layers of the industry. Asset managers, consultants, platforms, and distributors all play a role in shaping what members ultimately receive.

“This responsibility reaches across the entire chain,” he says. “Trustees have the influence to align it. When trustees articulate strong expectations, each stakeholder responds because the flow of capital depends on meeting those expectations.”

He stresses that regulatory frameworks alone cannot deliver the depth of improvement required.

“Regulations establish thresholds, but the pursuit of excellence depends on professional judgment, scrutiny, and ambition. Trustee leadership provides the impetus for higher quality throughout the system.

“Stewardship involves continuous engagement with product structure and governance.”

“It requires trustees to challenge assumptions, examine risk characteristics carefully, and ensure products remain suitable as conditions evolve.”

The CEO goes on to add: “Member trust increasingly hinges on this level of discipline. Savers want clarity on charges, clear explanations of investment purpose, and assurance that long-term risks are properly managed. Trustees who demonstrate command of these areas strengthen the confidence underpinning pension systems.

“Members respond positively when they can see robust thinking behind decisions,” he says. “Clear structures, disciplined oversight, and transparent information build confidence and support retirement security.”

He concludes that the current period presents an opportunity for trustees to guide the industry toward stronger foundations.

“Trustees hold significant influence. When they set clear and high standards for product quality, the entire sector responds, and long-term outcomes improve for millions of savers.”