Friends Life is planning to launch a master trust following increased focus on good scheme governance from The Pensions Regulator (TPR) and other industry bodies.
Head of marketing and corporate benefits Martin Palmer said it was the right time to enter the market and that interest in master trusts was only set to grow over the next 12 months.
"This is a master trust that offers the benefits of contract and trust-based arrangements, providing flexibility, cost efficiency and independent governance," he said.
It follows Premier's announcement earlier in the week that it was introducing a multi-employer defined benefit (DB) scheme and defined contribution (DC) master trust to the market.
Although TPR estimates there are around 50 master trusts on the market, Broadstone Corporate Benefits senior consultant Ian Hill said last year that he expected the master trust landscape to contract.
Palmer said the Friends Life master trust would have competitive charges broadly in line with other providers. Initially, it will target employers that already have schemes in place.
He said it would appeal to the provider's existing clients that want to simplify their arrangements, as well as employers that want to switch from their current arrangements into a master trust.
PTL was appointed sole trustee of the multi-employer scheme, choosing KPMG as the investment adviser and Squire Sanders as the legal adviser.
