LCP’s latest annual survey of professional and sole trustee markets shows that just four firms are responsible for managing £800bn of £1.1trn (€917 of €1.26trn) pension fund assets for which professional trustee firms are responsible.
LCP’s Sole Mate report shows that of the 226 new professional trustee appointments since April 2024, half went to four firms – LawDeb, Independence Governance Group (IGG), Capital Cranfield and BESTrustees.
However, the top four firms only account for 42% of the number of professional trustee appointments.
This means that while assets under management (AUM) overseen by professional trustees are still concentrated, appointment volume is more widely spread, with a broader group of firms playing a key role in the day-to-day governance of schemes across the market, often smaller in size.
The report shows that IGG and Dalriada oversee nearly 400 schemes each, while LawDeb, Capital Cranfield and IGG have a higher concentration of schemes at the larger end of the market.
Meanwhile, Dalriada and Vidett have responsibilities for a large number of schemes, which on average are smaller in size.
The report highlights that while concentration remains a key feature, new players are starting to make a mark. These include two new entrants to the professional trustee market in the past year – Falcon Trustees and Aretas – and several mid-sized firms are increasing their share of new appointments.
In terms of new appointments over the past year, the majority of growth is from schemes that previously had no professional trustee involvement, represented by 63%. This means that over 140 schemes have appointed a professional co-trustee for the first time.
Formal oversight
Looking ahead to 2026, the rise of consolidation is cited as a key trend for the next five years by the majority of respondents. This reflects the strategic focus of The Pensions Regulator (TPR) and the government’s push to facilitate the growth agenda through scale via consolidation.
In spring 2025, TPR announced it would extend formal oversight to professional trustee firms, a clear response to their growing influence in the pensions landscape. All of the firms surveyed welcomed TPR’s involvement and have been forthcoming with sharing information, although half of the professional trustee firms expect it’s likely to have little or no impact on the way they currently operate.
Nausicaa Delfas, TPR’s chief executive officer, said: “We know that professional trusteeship has experienced huge growth over the last few years, and we welcome the valuable insight and perspectives provided by this and other surveys.”
Delfas said that the current pension schemes bill is set to radically reform the market, and there is now a real opportunity to make sure good governance runs through the system.
She continued: “To protect savers, we have already extended our market oversight approach to the largest professional trustee firms. We expect professional trustee appointments to have followed a robust process, as trusteeship moves towards adhering to more conventional corporate governance standards”
Nathalie Sims, partner and head of strategic pensions relationships at LCP, added: “Our report shows a dynamic market that’s responding to regulatory change. As professional trustees take on more schemes and larger mandates, the regulator’s lens has sharpened – and questions around governance, independence and performance are now front and centre.”
Sims stressed that the growth in the market is continuing but taking different forms. “Consolidation and new regulation mean the next phase of the PT journey may look very different from the last,” she said.
Embedded in pension governance
Scott Pinder, head of corporate sole trustee at Law Debenture, said he expects to see an increase in demand for transparency, resilience, and clear value.
“It is clear the professional trustee market isn’t just getting bigger, it’s maturing and growing up,” he said.
“Like any industry that wants to stay ahead, we’re focused on keeping up with technology and regulatory changes so we can keep delivering the best results for our clients.”
Alison Hatcher, head of trusteeship at Vidett, added: “With The Pensions Regulator taking a closer look at board effectiveness and the skills on boards, this report helps to show that the market is responding by inviting more professional trustees to join their boards to drive strong governance and member outcomes.”
Annabelle Hardiman, head of professional corporate sole trustee at IGG, said: “With professional corporate sole trustee appointments now spanning a quarter of UK pension schemes, it’s evident this model has become a cornerstone of modern pensions governance.”
She added that as the landscape continues to evolve, IGG will be collaborating with the regulator to help shape a regulatory framework that fosters innovation and delivers value while safeguarding standards.
Barbara Fewkes, head of sole trusteeship for Dalriada Trustees, said: “With an increased focus by The Pensions Regulator on the professional trustee market, and in particular on the professional corporate sole trustee space, evidence of robust governance structures, risk management and decision-making processes will be vital.
“LCP’s report shares this view, recognising that we have reached a defining phase for professional trusteeship as the market matures and [regulatory] scrutiny becomes more apparent.”
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