UK - Consultation documents were published yesterday setting out how the government is taking forward three of the recommendations for legislative change made by Paul Myners in his report on institutional investment in the UK.
The Department for Work and Pensions and the Treasury have jointly published consultation documents that set out the proposals and options for taking forward legislative changes on:
* the need for trustees to be familiar with the issues concerned when reaching investment decisions
* whether schemes should have independent custodians
* encouraging shareholder activism
These documents have been developed in the light of responses made during the consultation last year on the proposed codes of principles and will seek contributions from pensions schemes, investment managers and others with an interest in pensions issues. The proposals will have regard to the separate work being carried out by Alan Pickering's team to simplify private pensions legislation and by Ron Sandler in his review of medium and long-term retail savings.
Views on the consultation documents are invited by May 3, 2002.
Nick Watts, European head of investment consulting at Watson Wyatt, said: We welcome the government's announcement not to enforce qualification on already hard-pressed trustees. Trusteeship comprises numerous responsibilities of which investment is one and an enforced investment qualification would only deter and not further their pension trusteeship.
“Trustees take on their duties diligently and bring a wide spread of experience and background to the pension fund industry. We believe it is best that these capabilities are supported by experts from a range of investment advisors.
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