Commenting on the FCA’s announcement finalising rules for a new type of fund designed to invest efficiently in long-term assets, Callum Stewart, Head of DC Investment, Hymans Robertson, says:

“We are supportive of the FCA’s proposals to extend the range of vehicles for pension schemes to access long-term investments such as illiquids. In particular, we agree with the proposal to remove the upper limit on exposure to illiquid investments for LTAFs, which addresses one of the current constraints with existing fund types that has limited innovation. Although not required, we also share the FCA’s positive view on work carried out by the Cost Transparency Initiative and that this should be used in the context of LTAFs where at all possible. As always, however, we should consider member needs first. This development should support greater product innovation and choice for DC schemes, and ultimately improve outcomes for members. Member security and the transparency of costs and charges are also important considerations.”