Updated: Risk of 'unintended consequences' from DC pension reforms

Chancellor’s proposals could make schemes more risk averse

Jonathan Stapleton
clock • 6 min read
LCP’s Laura Myers says trustees are already looking for the best returns while the PMI’s Robert Wakefield fears the proposals could ‘compromise’ trustee control over investment decisions.
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LCP’s Laura Myers says trustees are already looking for the best returns while the PMI’s Robert Wakefield fears the proposals could ‘compromise’ trustee control over investment decisions.

Plans to force defined contribution (DC) schemes to publicly disclose their level of investment in the UK and improve the performance of poorly performing schemes could risk having “unintended consequences” – causing plans to become more risk averse and potentially “compromising” trustee fiduciary duties.

On Saturday (2 March), chancellor Jeremy Hunt announced proposals to require DC funds to disclose their levels of investment in British businesses, as well as their costs and net investment returns...

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