The 2024 Code of Practice strengthens 10 of the 15 current codes, bringing the framework together in a single set of clear, consistent expectations for trustees related to scheme governance and administration.

However, the rules are not mandatory and pension schemes can choose whether to comply although there is a threat of penalties if the basic fundamentals of governance are not followed.

The Code states that ‘it is not necessary to follow all parts of a code of practice in every circumstance. Any other approach, which is not in the code of practice, will need to meet the underlying legal requirements and a penalty may be imposed if these requirements are not met’.

However, RSM UK raised concerns that the Code lacked the regulatory enforcement and documentation needed to achieve its objective.