Overview

Separation of roles between the board and management is a critical governance principle that ensures clear distinctions between the strategic oversight responsibilities of the board of trustees and the operational duties of management. This separation promotes accountability, reduces conflicts of interest, and enhances the effectiveness of pension scheme governance by allowing the board to focus on setting policies, monitoring performance, and safeguarding members’ interests, while management handles day-to-day administration and execution of board directives. The course examines the legal and regulatory frameworks underpinning this separation, including the Retirement Benefits Authority guidelines, and highlights best practices for defining roles, delegating authority, and maintaining robust communication channels between the board and management. Emphasis is placed on building trustee competence, ensuring independence where appropriate, and fostering a culture of transparency and trust to improve decision-making and scheme performance.

Key Topics:

• Governance Principles and Regulatory Frameworks: Understanding legal mandates and governance codes that define the separation of roles between trustees and management in pension schemes.

• Roles and Responsibilities of the Board vs. Management: Clarifying strategic oversight, policy formulation, and fiduciary duties of trustees versus operational, administrative, and implementation functions of management.

• Delegation and Accountability Mechanisms: Establishing clear delegation frameworks, reporting lines, and performance monitoring to ensure management accountability to the board.

• Trustee Competence and Independence: Enhancing board effectiveness through training, skills development, and balancing independent oversight with employee representation.

• Communication and Collaboration: Building effective communication channels and mutual respect between the board and management to support transparent governance and timely decision-making.