Government launches consultation on developing Myners II - UPDATED

The consultation comes in response to a review of the voluntary set of "comply or explain" principles principles last year "conducted by the National Association of Pension Funds" which recommended updating the Myners principles to ensure the continued spread of best practice among pension schemes.

The consultation proposes a set of "refreshed and simplified" higher-level principles and the development of a suite of authoritative best practice guidance and tools to help trustees improve investment decision-making and governance.

And it proposes establishing a joint government-industry investment governance group to co-own the principles, monitor their effectiveness and the quality of reporting against them, and make recommendations for improvements to investment decision-making and governance.

Exchequer secretary to the Treasury Angela Eagle explained: "Paul Myners' goal was that the principles should become the accepted code of best practice in investment decision-making and governance, with trustees transparently assessing their capacity and practice against them".

"The NAPF's review of the Myners principles is an important step towards that goal. The Government is taking forward the review's proposals to simplify and update the principles, and to improve reporting against them."

Pensions reform minister Mike O'Brien added: "The principles have already done much to help improve pension trustees' investment decision-making and governance, and this consultation aims to allow trustees to continue to build on that progress."

The Pensions Regulator chairman David Norgrove added: "The proposed investment governance group, which The Pensions Regulator would chair, will provide a forum for both industry and Government to work together to improve trustee investment decision-making and governance standards further."