Current Issues July 2019
03 Jul 2019 - Estimated reading time: 10 minutes
Excerpts from this month's articles (to read more, please download our latest Current Issues):
New investment rules for DB & DC schemes
Trustees of private-sector occupational pension schemes will need to comply with new shareholder-engagement obligations, beginning in October 2020. They will have to update their statements of investment principles (SIPs) to incorporate information about asset-management agreements and engagement policies. Trustees of defined benefit schemes will join those that provide money purchase benefits by having to publish their SIPs online. Trustees of both types of scheme will have to make statements, annually, about their adherence to the engagement policies, giving details of voting behaviour, and make that material openly available.
CMA order changes to investment consultancy & fiduciary management
The Competition and Markets Authority (CMA) has finalised an Order that gives legal effect to its remedies for problems that it found in the market for investment consultancy and fiduciary management services. The changes include restrictions on marketing by firms that offer both services, mandatory competitive tendering for fiduciary management, new rules on disclosure of information about fees and past performance, and a requirement for trustees to set strategic objectives for their investment consultants.
Public pensions progress précis
This article summarises consultation proposals affecting public service pension schemes and employers. They include suggested changes to the Local Government Pension Scheme (LGPS) valuation cycle and the payments falling due when employers exit that Scheme, and plans to cap public sector severance packages.
Pensions Regulator’s 2019-22 Corporate Plan
The Pensions Regulator has published its Corporate Plan for the three years to 2022. It comes at a time when the Regulator continues to change the way that it works including the development of a ‘clearer, quicker and tougher’ intervention regime.
Regulator’s latest Compliance & Enforcement Quarterly Bulletin
In its latest Compliance and Enforcement Quarterly Bulletin, the Regulator focuses mainly on recent successful enforcement cases, a number involving the use of some of its powers for the first time. It includes the Regulator’s first fraud conviction and its first custodial sentence.
Scams Code revised
The Pension Scams Industry Group has updated Combating Pension Scams, its Code of Good Practice. Although the Code has no statutory authority (compliance is voluntary), it has been mentioned by the Pensions Ombudsman as a source of guidance on due diligence.