Aon Consulting has questioned Paul Myners proposals that UK trustees should receive payment and investment qualifications.
The firm questions whether Myners' proposals - that extra time and resources are devoted to asset allocation decisions - might increase smaller schemes' costs, thereby deterring them from final salary provision.
Aon also challenges the following proposals:
- that scheme trustees should be paid and required to have investment qualifications;
- that fund manager fees should include the costs of information, research and transactional services used by the manager. Aon notes that “it might be a shock to many trustees to see just what an expensive business fund management is”;
- that “trustees should have sufficient in-house staff to support them in their investment responsibilities”.
Adrian Swales, head of the investment consulting practice added: While it may be all well and good for large funds to employ staff dedicated to providing investment support for the trustees, for small funds the cost will often be prohibitive. It would seem far more natural for trustees in this situation to be able to outsource support of their responsibilities to an investment consultant, in a way similar to outsourcing the payment of pensions.
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