From the blog: MPs may have migrated to warmer climes to relax during the parliamentary recess, but the civil servants at HM Treasury have evidently been working away behind the scenes.

The product of that hard work through the summer months? A rumoured policy almost no one thinks is a good idea, the care Isa. Maybe the heat got to them.

The newest addition to an ever-expanding array of savings products, the care Isa (Crisa?), which according to The Telegraph is being considered for inclusion in the government’s upcoming social care green paper, would be exempt from inheritance tax.

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From the blog: In perhaps an ironic twist last month, Northumbria Police was found guilty of not doing enough to protect one of its officers from the risk of becoming the victim of a pension scam.

As a result, they were forced to reinstate the claimant’s accrued benefits in their scheme. This could turn out to be a landmark event in what is fast becoming a landmark year in the fight against pension scams. 

Many schemes will look at this case and ask themselves if they could be doing more for their members. So, what more could they do?

From the blog: It is bizarre that the Work and Pensions Committee is questioning whether people understand the cost and value for money of their pension products when the Financial Conduct Authority has only just published research that answers their question.

Its Retirement Outcomes Review states that over a third of consumers who had opted for pension freedoms had no idea where or how their money was invested.

If someone cannot understand the simplest level of information around their contract, they have little or no chance of understanding the costs involved or any concept of value for money.

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From the blog: 2018 is predicted to see an unprecedented volume of pension schemes seeking to derisk using buy-ins or buyouts.

Given the finite resources of providers, pension schemes should expect a level of selection in what insurers will focus on – not all providers will necessarily quote on every transaction that comes to market.

This means schemes need to be well prepared when approaching the market to ensure the greatest level of interest from insurers.

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From the blog: Equity protection is back in vogue, with falls in markets at the start of the year putting downside protection strategies front of mind.

It is often more expensive for schemes to buy downside protection after markets have tumbled, as demand for such solutions jumps.

In fact, many schemes are missing a trick shelling out for this expensive downside protection, because costs do not have to be prohibitive as long as schemes buy the right kind of protection for them.

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From the blog: Good governance is the bedrock of a properly functioning trustee board. However, it is evident that trustees are struggling under a governance burden, which stems from the need to comply with increasing legal requirements and ever more Pensions Regulator publications.

This takes already limited trustee time away from the issues that really matter, in particular: strategy, investment and proper engagement with members.

However, trustees can follow a blueprint for easing regulatory overload by making changes to their approach to governance in three main ways.

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From the blog: The white paper on protecting defined benefit schemes will go under the spotlight on Wednesday with both the Pensions Regulator and pensions minister giving oral evidence to the Work and Pensions Committee as part of its inquiry.

One key proposal – to be discussed during tomorrow’s hearing – is the strengthening of the regulatory framework and giving the regulator greater enforcement and information gathering powers.

This could help avoid or mitigate situations like that of Carillion and BHS, and would be a very positive step forward.

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From the blog: Following nine months of detailed work by the members of the Financial Conduct Authority’s Institutional Disclosure Working Group, new cost data templates will, for the first time, provide an industry-agreed, consistent approach to collecting this important information.

Schemes have long awaited access to a granular level of information on investment costs – they have never been able to easily obtain it before. This is no silver bullet that solves all the industry’s problems, but it is an essential step on the journey to assessing value for money.

Gathering data is one thing, but knowing what to do with it is another. It is important that we do not just drown schemes in data, so what should be done with it?

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From the blog: Climate campaigners across the country spluttered into their morning cups of fair trade coffee last Tuesday as the Department for Work and Pensions and Financial Conduct Authority published their final responses to the Law Commission’s 2017 report on pensions and social investing.

Having kept its cards very close to its chest over the past few months, the FCA revealed that not only does it intend to require independent governance committees to report on financially material environmental, social and governance risks, including climate change, but it recognises that climate risk should be considered alongside mainstream investment risks such as inflation and liquidity risk.

The small step of publishing this response is a giant leap forward in the approach of the UK’s biggest financial regulator.

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