UK Pension Funds Governance between Trust Structure and Technology Based Structure: Can the Advantages of Trust be Achieved through New Technologies?

The legal institution of trust, as developed and utilised within the law of equity and trust in England, played an important role in social and financial spheres where the common law (and civil law systems) could not provide a flexible, efficient framework for protection of the interest of third parties (beneficiaries). Trust played a pivotal role in financial service globally, including investment and pension funds. However, rapid technological developments are also significantly impacting financial services in terms of making the intermediaries surplus. This article delves into the potential displacement of conventional trust schemes, which play a central role in governing pension funds in the UK, by emerging technologies. After having examined the structure and regulation of UK occupational pension schemes, focusing on pension trusts, the article first assesses the impact of new technologies on pension funds to understand if these technologies can achieve the same advantages carried out by trust in the management of such funds; secondly, the article highlights a possible use of such new technologies on pension trust, emphasising in any case the need for a balanced approach between technological advancements and the structure of pension trust. Additionally, the article explores the application of this approach to the management of Italian pension funds, offering a comparative perspective.