GLOBAL - UK pension funds are leaving billions of dollars sitting on the table by not claiming their share of the recompense won on behalf of shareholders in US securities class actions, it has been suggested.
New company Institutional Protection Services (IPS) was launched today to help schemes overcome obstacles such as the prohibitive expense and procedures which have rendered the process virtually impenetrable to non-US shareholders.
Roy Leighton, chairman of NYMEX Europe, will serve as chairman, with Caroline Goodman (pictured), former head of business development at the London Stock Exchange, as managing director.
According to IPS, hundreds of millions go unclaimed by UK pension funds and other funds each year. Three or four new class actions are undertaken each week in the US, it said, with the money awarded running into several billion dollars a year.
IPS MD Caroline Goodman (pictured) said: “We are dealing with money already on the table but which UK institutions have had a raw deal in seeking to access, until now... billions go unclaimed - and virtually no UK funds make claims.”
The firm said systems designed by the IPS team, which is comprised of securities, regulatory and IT experts, have previously paid out more than US$5bn in international restitution payments worldwide, including the $1.25bn Swiss banking holocaust-era assets settlement.
A panel of city law firms has been established by IPS to advise institutions on their fiduciary obligations, and how to collect money. Law firms on the panel include SJ Berwin, Lovells, Stephenson Harwood and Kirkpatrick & Lockhart Nicholson Graham.
By Lisa Haines
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point