The Investment Management Association (IMA) has issued a short press release responding to the Investment Governance Group’s consultation paper on draft investment governance principles and best practice guidance for both trust-based and contract-based defined contribution work-based pension schemes.
Richard Saunders, Chief Executive of the IMA, said:
"Pension provision is moving rapidly towards DC, and the introduction of auto-enrolment from 2012 will give it a further fillip. But it involves a significant shift of investment risk onto individuals.
The governance process can help scheme members to navigate their way through the complex decisions they will face. This includes default fund design, good communication and regular monitoring of fund performance. The draft principles from the IGG DC sub-group are an important contribution to the promotion of good investment governance in DC provision, whatever the underlying delivery architecture. The IMA fully supports this process."
View IMA welcomes draft principles on DC pension schemes, 12 February 2010