Updated: Risk of 'unintended consequences' from DC pension reforms

Chancellor’s proposals could make schemes more risk averse

Jonathan Stapleton
clock • 6 min read
LCP’s Laura Myers says trustees are already looking for the best returns while the PMI’s Robert Wakefield fears the proposals could ‘compromise’ trustee control over investment decisions.
Image:

LCP’s Laura Myers says trustees are already looking for the best returns while the PMI’s Robert Wakefield fears the proposals could ‘compromise’ trustee control over investment decisions.

Plans to force defined contribution (DC) schemes to publicly disclose their level of investment in the UK and improve the performance of poorly performing schemes could risk having “unintended consequences” – causing plans to become more risk averse and potentially “compromising” trustee fiduciary duties.

On Saturday (2 March), chancellor Jeremy Hunt announced proposals to require DC funds to disclose their levels of investment in British businesses, as well as their costs and net investment returns...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

Scottish Widows evolves workplace default

Scottish Widows evolves workplace default

New default to ‘maximise pension growth potential’ with high equities exposure

Jasmine Urquhart
clock 27 March 2025 • 2 min read
Defined Contribution Conference 2025: Registration open!

Defined Contribution Conference 2025: Registration open!

This year's event is being held in central London on 18 June

Professional Pensions
clock 26 March 2025 • 1 min read
Don't lose sight of the member in the quest for value for money

Don't lose sight of the member in the quest for value for money

Daniela Silcock says we need a proper breakdown of the costs of reform

Daniela Silcock
clock 25 March 2025 • 3 min read
Trustpilot