The Government has published its response to issues raised by respondents to its March 2008 consultation on proposals to update the Myners principles to improve pension schemes’ investment decision making.
In March 2008 HM Treasury announced proposals to strengthen the Myners principles based on the National Association of Pension Funds’ review of the these principles (see EPB bulletin from 08 April 2008). Our response to the March 2008 consultation broadly welcomed the proposals.
Following the consultation the Government has confirmed that it intends that:
- the revised framework will consist of a smaller number of higher level principles to provide for flexibility;
- the principles should be linked to best practice guidance and trustee tools;
- decisions on the nature, scope and development of the principles, best practice guideline and trustee tools shall become the responsibility of a joint Government/industry Investment Governance Group; and
- trustee boards should report against these principles on a voluntary “comply or explain” basis.
The Government has also made some changes to the wording of the revised principles in response to suggestions made by respondents during the consultation.