UK - At least one pension fund trustee of a FTSE 350 company is likely to be sued in the next 12-15 months, according to Deutsche Asset Management chairman Neil Dunford.
Speaking at DeAM’s ‘Myners: Investing at the Coalface’ conference, Dunford also said that in the current “dangerous” climate, the chances that the existing pension fund structure in the UK would collapse were “high”.
“You [trustees] are faced with even more responsibilities than I can remember during 30 years in the pension fund industry,” he told delegates. “The demand on trustees now is truly awesome.”
Dunford highlighted an “oppressive regulatory regime”; the “quantity of information” thrown at trustees; the “looming conflict between trustees and finance directors” resulting in the increased abandonment of DB schemes, and the “explosion of investment products and structure choices” - particularly in light of more pension funds opting for customised benchmarks - as some of the pressures on trustees.
On a more conciliatory note, Dunford added that the current climate had resulted in bringing trustees and fund managers together in a less “confrontational” way.
By Madhu Kalia
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.
UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).