How bank capital rules could shut pension funds out of hedging

Schemes’ temporary protection from clearing derivatives is being undermined by new bank capital rules.

Stephanie Baxter
clock • 6 min read

Schemes' temporary protection from clearing derivatives is being undermined by new bank capital rules that will make hedging strategies more expensive. Stephanie Baxter reports.

At a glance Schemes' clearing exemption is being compromised by bank rules Could force schemes to sell assets or shut them out of derivatives  UK schemes may need £7bn-£15bn in cas...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

TPR warns trustees face jail or fines if they break employer-related investment rules

TPR warns trustees face jail or fines if they break employer-related investment rules

Regulator’s warning follows intervention report into scheme where trustees broke ERI rules

Martin Richmond
clock 14 August 2025 • 3 min read
CDC could signal 'new era' for pensions adequacy

CDC could signal 'new era' for pensions adequacy

CDC will lead to rethink of scheme governance, decision-making and member comms

Jonathan Stapleton
clock 12 August 2025 • 2 min read
IHT on pensions pre-55 slammed as 'brutal'

IHT on pensions pre-55 slammed as 'brutal'

HMRC confirms those under minimum pension age will see IHT applied on their pots

Isabel Baxter
clock 12 August 2025 • 2 min read
Trustpilot