Welcome to your weekly update from the Allen & Overy Pensions team, bringing you up to speed on all the latest legal and regulatory developments in the world of occupational pensions.
Cost disclosure: new templates | TPR Corporate Plan 2019-2022 | ESG factors and investments: Parliamentary debate | UK Pensions Awards: double win |
Cost disclosure: new templates
The Cost Transparency Initiative (CTI) has published new cost disclosure tools for asset managers and pension scheme trustees, designed to help trustees compare costs and charges across investments. Resources include cost disclosure templates for asset managers, a summary document for trustees, and guidance for pension schemes and their advisers on how to make use of cost information.
The Financial Conduct Authority has issued a statement welcoming the templates, and the Pensions Minister has indicated that if the templates are not adopted by the industry on a voluntary basis, legislation may follow.
The CTI expects asset managers to be able to report against the published templates for scheme year ends from December 2019 onwards.
TPR Corporate Plan 2019-2022
TPR has published its Corporate Plan 2019-2022 setting out its priorities for the next three years, based on core regulatory risk and broader economic and market factors. Priorities for TPR include:
- improving standards of trusteeship, governance and administration. This work will include improving record-keeping standards, developing TPR's new governance code of practice (this is part of the implementation of IORP II) and consulting on the future of trusteeship and trustee standards (including the composition of trustee boards); and
- developing and implementing a new DB funding code. TPR will also extend its programme of intervention with schemes before and during their valuation processes.
TPR plans to spend over GBP13 million more in 2019-20 almost half of this is due to staff costs.
ESG factors and investments: Parliamentary debate
New rules for pension schemes on the consideration of environmental, social and governance (ESG) factors and investment stewardship come into force on 1 October 2019. This remains a high profile issue; this week the Pensions Minister confirmed in a Parliamentary debate on `Pension Funds: Financial and Ethical Investments' that the Pensions Regulator intends to issue further guidance on managing climate change risk before the regulations come into force.
To read more about complying with the new requirements, see our briefing `Pension scheme investing: keeping members informed'.