EUROPE - The UK's National Association of Pension Funds (NAPF) has today endorsed the T-Charter and called for the establishment of a pan-European steering group to further develop the set of principals.
In a statement the NAPF said it recognised the importance of achieving high standards in the transition management industry. It also called for, "the introduction of a comply or explain requirement, that is, based on disclosure rather than prescription".
The NAPF said consideration should be given to improving the transparency of reporting and disclosure of transition management exercises.
Arno Kitts, NAPF Investment Council chairman, told Global Pensions the introduction of the T-Charter had been a great step forward but that the NAPF felt there was still further to go. He said: "It is important that transition managers declare any conflicts of interest and that pension funds demand disclosure of them. This is the best way for these issues to be managed."
Kitts admitted the charter lacked the ability to formally sanction signatories who did not comply to the T-Charter. However he added: "I think in this case publicity would act as the teeth, if a service provider was not living up to the T-Charter."
He concluded: "As part of our position statement, the NAPF recommends that pension fund trustees and other asset owners should consider compliance with the T-Charter becoming a requirement within all Transition Management Agreements."
Rick Di Mascio, chief executive for Inalytics Limited and chair of the T-Charter, said: "I am delighted to accept the NAPF's support for the T-Charter and look forward to working with them in order to keep it relevant for clients."
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