Member

The likely effect of Amendment 26 would be to allow some small schemes, and potentially any scheme in scope, to avoid reaching scale altogether. That would undermine the intended reform which I hope we broadly agree, across the House, would benefit members. We want scale not for the sake of it but to improve the outcomes for those who save into schemes. I should also alert the House to the fact that both regulators have expressed their strong concerns to the department about this amendment. Put simply, they think it is inoperable and exposes them to risk. Working out exactly what the standard is that a regulator is supposed to apply could ultimately be a matter for the courts, adding years to the process and, ultimately, leading to increased costs for members while not delivering the benefits of scale.