US - A retired former employee of Fremont General Corp has sought to bring a class action lawsuit against the company in order to recover "millions" of lost pension fund dollars.
According to local press reports, the retiree was suing Fremont, a Santa Monica-based mortgage lender, on the basis that management encouraged the company pension plan to buy company stock, despite knowing it was an “imprudent” investment.
It is alleged that between 1 January 2003 and 24 April 2007, while the Fremont pension plan was encouraged to buy US$150m to $210m of company shares, Fremont executives sold off $16.5m of their own holdings in the company, aware of the “unsound underwriting, risk management and lending practices”.
These “unsound” practices recently led to the company being banned by US regulators from offering subprime mortgages. The company’s shares have halved in value this year.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.