Class actions are on the rise. Should trustees pick up their cudgels?

Guest blog: Almost from nowhere, pension managers and investment committees are being bombarded with class actions. But how do you manage these, and what are trustees’ duties in these cases?

Until recently, trustees have been able to maintain a distance from their involvement in class actions. This has suited them as there is a general dislike for an activity that is commonly perceived as ambulance-chasing among pension schemes.

So, why has this changed?

The main reason – and possibly the trigger for the sudden activity in the UK – is the 2010 US decision in Morrison v National Australia Bank, which limited US class actions to claims where the purchase was on a US exchange or within the US.

We have also seen a large number of US firms setting up in London with an eye on the action.

Click here to read the full blog post