UK - The Association of Consulting Actuaries (ACA) said it was "very troubled" by further complexities that have come to light in the wake of the Government's response to the Myners' review.
Earlier this month, the ACA endorsed the simplification of private pensions legislation and regulation by the Government, in particular the discussion clarifying the Government’s expectations.
However, the Association now says it is “very troubled” that so soon after the announcement further complexities are proposed by way of this response.
The ACA’s main concern is the the extra time and total costs involved in complying with the Code of Conduct:
This is not an opportune time for pension schemes to shoulder extra administrative requirements,” said Colin Richardson, chairman of the ACA investment committee.
“The ACA believes that the Government has under-estimated the extent to which trustees comply with most of this code at the present time without necessarily documenting each point and communicating these matters to members. Thus, full compliance may lead to less change in actual investment decisions than the Government expect.
The ACA also expressed its reservations about some of the content of the Code investment decision-making, adding that the extra disclosure requirements “will have little value for scheme members.”
“There is a risk that more information may lead to more confusion rather than more understanding, said Richardson.
Provision that mandates should not be terminated before the expiry of an evaluation timescale was also attacked as being “inflexible and one-sided.”
And ACA said of the Code: “[The] Government is effectively making it compulsory.” By Madhu Kalia
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