UK - Consultants are urging the government to set a Myners' benchmark for pension funds.
The government will begin to review how schemes have responded to the report’s recommendations in April. And it has warned that it will legislate if it believes funds have failed to comply.
But consultants say this will be difficult without any formal benchmark.
Watson Wyatt investment consultant Peter Brackett said: “There is no ‘line in the sand’ as a formal benchmark whereby the government would decline or undertake to legislate.”
Buck Consultants head of technical services Kevin LeGrand agreed and said there was little indication of how the government would test how pension funds measured up to Myners.
He said: “Clearly the worry must be that it will come to the wrong conclusion.”
The NAPF will be carrying out its own research next month on the issue with a survey of 100 schemes, approximately 10% of its membership.
NAPF spokesman Andy Fleming said: “The intention is to give the results to the Treasury.
“Depending on what the results are, it will help to form their views on whether they need to go ahead with regulation or not – our preference would be to avoid it.”
Barnett Waddingham partner Colin Richardson said: “The code of conduct is helpful because trustees can look at that and it is a good technical description of investment matters and how trustees can make decisions properly.”
But he added: “There is no need to put that into legislation.
“Trustees should be able to conduct their duties as they see fit.”
PP has compiled a list of what to watch out for over the coming months.
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