Sophia Singleton: A compromise would demonstrate the government has listened to the pensions industry on this vitally important issue
The Society of Pension Professionals (SPP) has backed likely government changes to the Pension Schemes Bill’s mandation power in a bid to bring them more in line with the Mansion House Accord.
The move comes after a House of Lords amendment which removed the investment mandation power from the Pension Schemes Bill in a vote on 19 March.
The bill will return to the House of Commons next Wednesday (15 April), where it is understood the government will modify the so-called reserve investment power so that it more closely aligns with the Mansion House Accord.
According to an article in the Financial Times, under the proposed compromise, ministers will write a clause into the bill setting a limit on the reserve power to reassure peers and the industry.
SPP president Sophia Singleton said the move would be a "practical compromise".
She said: "As the Pension Schemes Bill reaches its final stages of consideration, we appreciate that whilst the Lords had voted for the mandation power to be removed, a practical compromise ensuring that the mandation power is brought into line with the Mansion House Accord, does demonstrate that the government has listened to the pensions industry on this vitally important issue and is a welcome, practical solution to what we acknowledge is a complex matter."
