On 30 November 2022, the FCA published a statement made by the Pensions Regulator, the Central Bank of Ireland and the Commission de Surveillance du Secteur Financier on the resilience of Liability Driven Investment (LDI) portfolios and the operational governance of pensions schemes using LDI strategies. The statement sets forth that, the FCA expects asset … Continue Reading
On 1 December 2022, the FCA published Consultation Paper 22/25: Proposed regulatory framework for pensions dashboard service firms (CP22/25). Proposals In CP22/25, the FCA sets out its approach to supervision and enforcement for dashboard operators, including on fees, regulatory reporting, record keeping, prudential requirements and conduct rules. Under the following proposals, dashboard operators will be … Continue Reading
On 1 December 2022, the FCA published Policy Statement 22/15: Improving outcomes in non-workplace pensions (PS22/15). In PS22/15 the FCA sets out its responses to the feedback it received on its November 2021 consultation requiring firms to offer a default option to non-advised consumers buying a non-workplace pension (NWP). It also sets out the FCA’s … Continue Reading
On 7 November 2022, Sara Breeden (Executive Director, Financial Stability Strategy and Risk, Bank of England) gave a speech at the ISDA and AIMA on ‘Risks from leverage: how did a small corner of the pensions industry threaten financial stability?’ In her speech, Ms Breeden sets out how leverage outside the banking sector can create … Continue Reading
On 2 August 2022, the Financial Conduct Authority (FCA) published Consultation Paper 22/15 ‘Calculating redress for non-compliant pension transfer advice’ (CP22/15). In CP22/15 the FCA is proposing to set up a redress scheme for people who transferred out of the British Steel Pensions Scheme (BSPS). This should see firms pay over £70 million of compensation … Continue Reading
The Financial Conduct Authority (FCA) is consulting on proposals for a redress scheme for former members of the British Steel Pension Scheme (BSPS) who were given unsuitable advice to transfer out of the scheme and suffered financial loss. The BSPS, a large defined benefit pension scheme, had to be restructured after Tata Steel faced financial … Continue Reading
On 13 April 2022, the PRA issued a statement providing an update on its approach on capital arbitrage transactions. The PRA has issued the statement as it is aware that some PRA-regulated firms have conducted, or may be considering conducting, deficit reduction transactions with their defined benefit pension schemes that are structured to limit the … Continue Reading
The Taskforce on Nature-related Financial Disclosures (TNFD) has released a prototype of its risk management and disclosure framework for nature-related risks. The TNFD wants trustees of pension schemes to start taking action now. The framework is designed to assist companies, investors and lenders in accounting for nature-related risks and opportunities in their decision-making. In effect, the … Continue Reading
New draft regulations show that schemes have much to do to get ready for Pensions Dashboards. For master trusts and defined contribution (DC) auto-enrolment schemes the pressure is on. Dashboards are online platforms which will allow people to view information about all their pensions, including their state pensions, in one place. The Pensions Dashboards Programme … Continue Reading
