The Pensions Regulator says 16 million pension pots are now ‘better protected’ after all the existing schemes have been authorised and moved to the new rules.

Master Trust pension schemes had to apply for authorisation and prove they met new standards to continue operating in the market.

A year after the window for applications opened, the final scheme has been authorised and the process for existing schemes has ended.

A total of 37 schemes have now received Master Trust authorisation after the final two, the FCA Pension Plan and The Salvus Master Trust, were verified this year.

As a result of TPR implementing the new law the market has shrunk in size by nearly 60%, from 90 schemes to 37 authorised Master Trusts.

Master trusts have grown due to the expansion of automatic pension enrolment which has seen 10.2m people newly saving or saving more for retirement, says TPR

Some 50% of employees who have been automatically enrolled into a pension are saving into a Master Trust.

The new safeguards were introduced on 1 October 2018 and all existing schemes had to meet the demanding new standards or close.

To gain authorisation had to prove they were run by fit and proper people, have sufficient financial reserves and robust plans and systems in place. New master trusts will have to be authorised by the TPR before setting up in business.

Nicola Parish, executive director of Frontline Regulation at TPR, said: “These tough new requirements better protect the 16 million pension pots in Master Trust schemes, which people will rely on in their retirements.

“More than 50 schemes leaving the market shows that these laws are demanding – and rightly so. The 37 authorised master trust schemes will continue to be closely supervised by us to make sure they continue to operate within the law.

“We will also expect them to set an example for the rest of the pensions industry – to have their data in shape ready for the Pensions Dashboards, to be at the forefront of considering climate change in their investments and ensuring that savers are getting value from their pensions.”