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
This week's edition of Professional Pensions is out now
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