Marsh McLennan's Mercer completes the acquisition of Cardano

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The case for a Corporate Sole Trustee

Different approaches to DB governance and implementation can work well, but there’s one model we’ve seen work well consistently: corporate sole trustee (CST).

 

That’s when a company stands down its traditional board of trustees and then appoints a CST, which is the company’s prerogative under most schemes’ trust deed and rules. The CST then appoints a fiduciary manager who is given a clear mandate set by the CST in consultation with the company.

 

This model is proving attractive to schemes at all stages of their journey, including schemes material to the company and those with a buyout or a scheme merger on the horizon.

 

CSTs are professionals whose services may add to governance costs. But that can be money well spent as an investment in member and company outcomes. In our experience, CSTs can often drive down investment and other costs, meaning total scheme expenses fall, sometimes significantly.

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The case for a CST

In this short video, Patrick Cunningham, Group Chief Commercial Officer at Cardano discusses:

    • What is a Corporate Sole Trustee?

    • How can companies and trustees co-ordinate governance and implementation, whilst lowering overall costs?

    • When does the Corporate Sole Trustee model make sense?

Our 2023 CFO report

New world, new decisions

Our report, New world, new decisions, reveals proprietary insights into key areas of interest to UK CFOs and senior executives on the challenges and opportunities for their Defined Benefit (DB) pension schemes. This comes at a time where improved funding positions and burgeoning pension surpluses has created a new set of dilemmas for corporates.  

Download the report