The Weekly Wrap: October 20 edition

Getty Images

A round-up of the pensions industry stories published across the FT Group – from a Japanese fund’s planned use of artificial intelligence to scrutinise asset managers, to a pensions revolt against Facebook chief executive Mark Zuckerberg.

Fairs: Commercial consolidators pose new challenges for regulator

The Pensions Regulator has stated its support for the introduction of defined benefit consolidators, but is still grappling with key risks and challenges including the timing of necessary legislation and the impact consolidators may have on the marketplace.

Opperman aims for bumper summer pensions bill

PLSA Annual Conference 2018

The minister for pensions and financial inclusion, Guy Opperman, has stated his intention to deliver a “very substantial” bill addressing multiple areas of pensions regulation in the summer of 2019.

Joint watchdog strategy to include consumer journey review

The Financial Conduct Authority and the Pensions Regulator have launched a joint regulatory strategy to deliver better outcomes for pension savers, with priorities including a planned consumer journey review and a focus on driving value for money.

PPF benefit top-up met with anger from solvent FAS members

The Pension Protection Fund’s plan to top up compensation where members receive less than half of their original pension unfairly misses out some members of the Financial Assistance Scheme, according to a pensions campaign group.

Government to legislate for CDC

The Work and Pensions Committee has published a letter from Guy Opperman, minister for pensions and financial inclusion, which indicates the government’s intention to lay primary and secondary legislation for collective defined contribution schemes.

Comment & Analysis

Three big ideas for better member engagement

PLSA Annual Conference 2018

For all the successes of behavioural finance and auto-enrolment, the weight of retirement decisions on savers means member engagement is still important. Three experts pitch their ideas to improve scheme communications.

Why ESG is not a flash in the pan

Lydia Fearn

With interventions from government putting increased pressure on schemes to consider environmental, social and governance factors, trustees must not dismiss ESG as a fad, says Redington's Lydia Fearn.

Many schemes are still not engaging on costs

John Simmonds

Better disclosure standards for investment costs are unlikely to spur a flood of terminated mandates, says CEM Benchmarking’s John Simmonds, but if used properly will make trustees better buyers of asset management services.

Videos & Podcasts

What does the future hold for LDI?

Twitter podcast logo

Podcast: The popularity of liability-driven investment strategies among defined benefit pension funds has increased over the years. In 2017, the total notional value of liabilities hedged by LDI strategies continued to grow, rising to £965bn from £904bn, according to XPS Pensions research. In this episode, Nick Harvey, principal at XPS Pensions, discusses how scheme exposure to LDI has changed over time, and what the future holds for this type of investment strategy.

DC default design: Make sure you understand your members

Twitter podcast logo

Podcast: Last month, Pensions Expert reported that trustees of the Lloyds Bank Pension Scheme No.1 had overhauled the default offering for their DC members. In this episode, Lydia Fearn, head of DC and financial well-being at consultancy Redington, and Maria Nazarova-Doyle, senior investment consultant and head of DC investment consulting at JLT Employee Benefits, discuss the most important factors for trustees to consider when designing or reviewing their default investment strategy.

How should trustees be monitoring their employer covenant?

Twitter podcast logo

Podcast: Over the last few years, headlines highlighting several high-profile defined benefit pension cases have hammered home the importance of having a strong covenant. Mark Evans, director at Independent Trustee Services, and Adolfo Aponte, director at covenant specialists Lincoln Pensions, explain how trustees can keep tabs on their employer.