Independent Governance Committees (IGCs):

• Used for contract based schemes
• IGCs must have at least 5 members with the majority being independent
• They ensure that all aspects of value for money are reviewed independently
• They are required for group SIPPs

They key duties for the IGC:

• to act solely in the interests of relevant scheme members;
• to assess the ongoing value for money of workplace personal pension schemes;
• where they find problems with value for money, to raise concerns with the provider’s board;
• where they are dissatisfied with the actions taken, to escalate concerns to the FCA, alert relevant scheme members and employers and make their concerns public; and
• to publish an annual report of their findings.

Providers offering less complex schemes can establish a Governance Advisory Arrangement (GAA) which is cheaper but the outcome is still the same.