Pension Power

The Science and Technology Framework earlier this year committed to “[narrowing] the financing gap for the UK’s most innovative science and technology companies”, and to “[increasing] the supply of UK institutional investment to deepen the pool of domestic capital… particularly defined contribution pension schemes” by 2030.20 Recent developments in AI, and forthcoming ones in areas of UK strength. [...] The investment duties imposed on pension trustees exist in Regulation 4(2) of the Occupational Pension Schemes (Investment) Regulations 2005, issued by the Secretary of State for Work and Pensions.80 They read: (2) The assets must be invested— (a) in the best interests of members and beneficiaries; and (b) in the case of a potential conflict of interest, in the sole interest of members and benefic. [...] As such, the policy areas that must be covered by the SIP should be amended to include: Regulation 2 (3) A statement of investment principles… must cover… (b) their policies in relation to… (vii) the consideration of charges as an element of net returns (viii) the appropriate level of scheme liquidity and the effect of said liquidity on the different kinds of investments held by the scheme 8.3 The. [...] As such, the FCA should update the COBS rulebook to include: COBS 19.5.5(6) The Chair of the [Independent Governance Committee] will be responsible for the production of an annual report setting out… (a) The [Independent Governance Committee’s] opinion on: (iii) the appropriate level of scheme liquidity and the effect of said liquidity on the different kinds of investments held by the firm COBS 19. [...] At the same time, he committed to increasing the investment by the Local Government Pension Scheme into similar assets to 10% over the same time period.102 ● 2023: Value for Money framework: Published by DWP the day after the Mansion House speech,103 the Government and pension regulators decided to introduce a new set of regulatory obligations to drive value for money among pension funds.