Pensions Bill

My Lords, noble Lords may recall that in Committee we discussed the arrangements for the trustee corporation that will manage the day-to-day running of the personal accounts scheme. In particular, we debated whether there will be a committee with responsibility for reviewing the corporation’s internal financial controls. It may help if I remind the House that the corporation will be established as a non-departmental public body and its sole function will be to run the scheme in the best interests of its members, within the order and rules. As part of its work in designing and establishing the personal accounts scheme, the Personal Accounts Delivery Authority will assist with and advise on the practicalities of establishing the trustee corporation. Once the trustee exists, the delivery authority will help the corporation set itself up and facilitate the handover process. At this early stage, we do not know exactly what the assurance and internal control arrangements for the trustee corporation will be. In Committee, I said that it was probable that the trustee corporation will have an audit committee. If that was interpreted as equivocation, let me be clearer. I can reassure the noble Baroness that the authority has advised me that the intention is that the trustee corporation will establish an internal controls committee reflecting best practice in corporate governance. The Bill allows for such a committee through the provisions in paragraph 9 of Schedule 1. I hope that the noble Baroness will accept my assurances that there will be a committee with responsibility for reviewing the corporation’s internal financial controls and that her amendment is unnecessary. If I need to be clearer, I will endeavour to be so at a second attempt.