INCLUDING - UK - Paternoster secures Lasmo Pension Plan; UK - Grayling urges PM to activate pensions package; DFSA issues hedge fund code of practice; UK - Pension funds look east; UK - Actuary leaves Aon
Eni Lasmo Plc has transfered its £150m defined benefit (DB) pension plan assets and liabilities to Paternoster. Stuart Faloon, principal, Mercer, said the online event is the largest that has been conducted in the UK to date, and was one of the most challenging and most productive in terms of savings produced for the client. The plan has 511 deferred members and 119 pensioners.
UK - Grayling urges PM to activate pensions package
Shadow secretary for work and pensions Chris Grayling has written to the prime minister urging him to use the funds which the deputy government actuary, Andrew Young, has said are available to help the 125,000 people who have lost their pensions. This comes as reports circulate that the Department for Work and Pensions was locked in arguments with the Treasury over whether to implement proposals to bring the Financial Assistance Scheme into line with the Pension Protection Fund.
DFSA issues hedge fund code of practice
The Dubai Financial Services Authority (DFSA) has become the first regulator to issue a hedge fund code of practice, which includes nine high-level principles covering areas of key operational, management and market-related risks in areas such as valuation of assets, back office functions and exposure to market risks. David Knott, chief executive of the DFSA, said: "Having received highly positive feedback throughout the consultation period, we are confident that the Code will provide investors and hedge fund managers with a backdrop for the successful development of hedge funds in the Dubai International Financial Centre (DIFC), by ensuring the industry has the necessary regulations in place to prosper. This initiative reflects our commitment to the continued development of the DIFC as an attractive and well-regulated environment for hedge fund operators and prospective investors."
UK - Pension funds look east
Pension funds have identified emerging Asia as the region with the greatest potential for equity gains, according to Baring Asset Management. In a poll of UK pension schemes, Barings has revealed investments in Asian equities remain at approximately the same levels as last year, slightly reduced from 13.2% to 12.6%, yet for the asset class as a whole pension funds have reduced their allocations to equities in the last year from 70.8% to 63.9%. The study also revealed a significant shift of allocation of pension fund assets to hedge funds. In 2006 just 17% of those surveyed invested in a single strategy or fund of hedge funds. This year that figure has increased dramatically to 47.8%, reflecting increased levels of interest in alternative investments from institutional investors, according to Barings.
UK - Actuary leaves Aon
Punter Southall has appointed Kevin Burgess as an actuary. Burgess joined Punter Southall's Wokingham office on 26 November and was previously an actuary and consultant Aon Limited. During his time at Aon, Burgess was responsible for the company's research into Dun & Bradstreet failure scores and their impact on PPF levies. This included investigating the factors that affect the failure scores and the elements that have an impact on the PPF levy.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.