Latest articles from Tony Hobman

‘Tis the season to be jolly

Tony Hobman

From the blog: ‘Tis the season to be jolly – unless of course you’re fretting over whether your integrated risk framework will stand up to a regulatory tap on the shoulder if all those complicated value-at-risk estimates come home to roost… or a hundred other things specially designed to keep defined benefit trustees awake at night.

Of course, life at the coalface always looks and feels a bit different from the big-picture stuff – well, some of it anyway.

Twelve months ago, all those ‘what does 2015 hold for pensions’ predictions said change, change and more change.

A relativity problem in the funding universe

Tony Hobman

Talking Head: Employer covenant has finally achieved the prominence it deserves in the assessment and monitoring of defined benefit scheme risks – in regulatory terms at least, following the Pensions Regulator's funding code in 2014 and its follow-up guidance this August.

EU and workplace pensions: what now, where next?

Tony Hobman

Talking Head: Lincoln's Tony Hobman gives a snapshot of the current state of play with the European IORP directive – and says we may be in for a wait. 

Looking through the lens of the regulatory telescope

Tony Hobman

Blog: Following last week's update to the Pensions Regulator's three-year corporate plan, here is a brief stock-take of what the world appears to look like through the lens of the regulatory telescope.

At the most strategic level, the regulator's success framework and corporate priorities are meant to "stand the test of time", so it’s good to see that its established external focus on good governance and administration, security and good outcomes for members and employer compliance, hasn’t been blown off course – even with the current rate of change across the pensions policy landscape.

But what about the layers of regulatory involvement and interest that sit below those more lofty ambitions?

Where, in practical terms, can it be expected to focus its oversight in the months ahead, let alone over the next three years?

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Finding the right ratio of stick to carrot in pensions regulation

Talking head: Lincoln's Tony Hobman argues the Pensions Regulator will have to develop its oversight in order to strike the right balance in response to an evolving industry.

Why trustees will be spending more time on PPF certification, not less

It was no surprise the Pensions Regulator’s latest DB code recognised the potential value to both schemes and sponsors of contingent assets where trustees agree "to accept more risk than can be supported by their available employer covenant”.

Asset-backed contributions get a few paragraphs of their own in the code too, and are acknowledged as having the potential to “improve a scheme’s security by providing access to valuable assets or cash flow which were previously out of reach”.

Neither of these funding support mechanisms escapes, however, without some cautionary words from the regulator on the need for trustees to unpack and understand the true value and complexities of what may be on offer.

Of course, as well as helping to reduce scheme funding risks, having an arrangement such as a parent guarantee or ABC in place may also have a positive impact on the amount of Pension Protection Fund levy that has to be paid.

This, in turn, means the PPF needs to be satisfied with the value that can be placed on it. The deadline for schemes to meet the annual certification requirements is now less than 10 weeks away.

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