Regular round-up of the latest pensions, investments, trusteeship and scheme management news
Current Issues - May 2023
03 May 2023 - Estimated reading time: 7 minutes
See excerpts from this month's articles below (to read more, please download our latest Current Issues).
DB Annual Funding Statement 2023
The Pensions Regulator has announced the 2023 edition of its Annual Funding Statement. Following significant funding improvements for most, the Regulator’s thoughts turn to long-term-planning reviews, protection of gains, and buy-out readiness.
New obligations to encourage DC illiquid investments
Amending Regulations have made changes designed to facilitate and promote investment in illiquid assets by schemes providing money purchase benefits. The alterations will affect charge-cap calculations and statements of investment principles for default investment arrangements, as well as the contents of trustees’ annual governance (Chair’s) statements and online disclosures. Most of the alterations came into force on 6 April 2023, but compliance deadlines will vary in practice, according to circumstance.
Regulator sketches out work programme
[Highlights from TPR's Corporate Plan for 2023/24]
More on LDI from the regulators
The Financial Conduct Authority (FCA) published Further guidance on enhancing resilience in Liability Driven Investment (LDI). It contains recommendations for liability-driven investment (LDI) providers, on risk management and stress testing, operational arrangements, communications and client-relationship management.
Warning on ex-pats’ DB pensions
The Financial Conduct Authority (FCA) is concerned about overseas advisers targeting members of UK defined benefit (DB) schemes who are living abroad. It has highlighted the issues for UK-based financial advisers who might be recruited by overseas advisers to provide the 'appropriate independent advice' necessary for transfers of over £30,0000 to proceed.
First CDC scheme receives imprimatur
The Pensions Regulator announced the authorisation of the UK's first collective money purchase (AKA collective defined contribution, or CDC) scheme. As expected, the distinction belongs to the scheme set up by Royal Mail Group, whose interest in CDC provided the Government with the initial impetus to facilitate the new benefit type.
HMRC newsletters: April 2023
[Highlights from HMRC's Pension Schemes Newsletter 149]
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