NAPF says IGG must not become “backdoor route” for regulation

The trade body said that it broadly welcomed the formation of the IGG and said that agreeing the remit of this new industry body had to be made a priority.

It urged the IGG to become the main vehicle for the development of future best practice in scheme governance for investment decision making rather than "a backdoor route for further regulation from the regulator".

NAPF chief executive Joanne Segars said it was now the time to also focus attention on addressing key areas such as trustee self assessment and extending compliance to small and contract-based DC schemes.

She said: "We broadly welcome the Treasury’s response to the recommendations we put forward last year following our review. The proposals set out a package for continued improvements in trustees’ investment decision-making."

The comments come in response to a consultation by HM Treasury, the department for work and pensions and The Pensions Regulator on developing a "refreshed and simplified" set of Myners principles.

The consultation followed a review of the voluntary set of "comply or explain" principles principles last year conducted by the NAPF which recommended updating the Myners principles to ensure the continued spread of best practice among pension schemes.