The TPR has updated its guidance to help ensure schemes comply with the new regulations.

The TPR says the new rules are designed to ensure that schemes “consider all the investment opportunities available to achieve best value for savers.”

From 1 October, trustees will be required to publish their policy on investing in illiquid assets in the statement of investment principles for their scheme’s default arrangements.

Illiquid assets are defined by the TPR as those that cannot easily or quickly be sold or exchanged for cash and include any assets held in a collective investment scheme.

There has been concern that some relatively illiquid assets, such as property funds, have been difficult to realise during periods of fund suspension.

Trustees will also be required to disclose the asset class breakdown for each of their scheme’s default arrangements in the chair’s statement.

The new regulations have also removed a regulatory barrier that the TPR says may have hindered trustees from exploring investment in certain funds that came with performance fees.

Since 6 April, trustees have had the option to exclude specified performance-based fees from the list of charges falling within the regulatory charge cap limit of 0.75% per annum.

Louise Davey, TPR’s interim director of regulatory policy, analysis and advice, said: “Trustees have a duty to savers to act in their best interests. That means working hard to deliver the retirement income that savers expect, including properly considering the full range of investment options. Our updated guidance helps trustees make these often complex decisions."

The TPR says that to ensure transparency, schemes must disclose in their chair’s statement any performance-based fees incurred in relation to each of their default arrangements, calculated as a percentage of the average value of the assets held in those defaults.

Trustees must “robustly assess” the extent to which these fees represent good value for their savers alongside other costs and charges.