The Global Pensions Wrap: July 20 edition
The pick of pensions headlines around the FT this week include the Securities and Exchange Commission putting up a hurdle to global responsible investment efforts and Emmanuel Macron's bold attempt to make French workers retire later.
The week in numbers
- France's pension system could shrink from 42 schemes to one public and private arrangement
- 182 Irish-domiciled funds have been warned over closet tracking and misleading information
- Spanish government compensation for overtaxed dividends is expected to outstrip the €15m plus interest ordered so far
SEC chair floats raising bar for shareholder resolutions, cracking down on proxy firms
Fundfire: Shareholders in US companies could face further hurdles to bringing resolutions before companies under plans being considered by the chair of the US Securities and Exchange Commission. Jay Clayton told the crowd at a recent speaking engagement that he is considering increasing the number of shares needed to make a proposal, the support needed to bring a resolution to a vote, and limiting the role of advisory companies. The changes would likely create logistical problems for asset managers and frustrate the efforts of environmental, social and governance investors.
French to work for longer under Macron's pension system
FT: Forty-two public and private pension systems are to be rolled into one under contentious reforms launched by French president Emmanuel Macron. The overhaul, which will also move full pension age back by two years to 64, is a risky one for Mr Macron, with a previous attempt in 1995 having proved the downfall of prime minister Alain Juppé. The changes have been presented to the president, and if they pass through a bill and debates next year will be adopted in 2025.
Irish closet tracker review ups pressure on fund boards
Ignites Europe: Irish asset managers have come under fire for poor governance in a review of closet index-tracking published by the Central Bank of Ireland. The regulator highlighted irregularities in the management of 182 Irish-domiciled funds, where high fees were being charged for minor variances from benchmarks and investor documents were misleading. The bank warned managers to "consider the accuracy of their prospectus and [key investor information document] on an ongoing basis". It also questioned whether the Ucits fund structure was fit for purpose.
Pension head fired after admitting harassment and spying
Fundfire: Arizona's Public Safety Personnel Retirement System has sacked its head of administration for sexually harassing an employee and spying on another member of staff. Jared Smout admitted to the charges, the Arizona Republic reports, telling state prosecutors he had used the organisation's video surveillance equipment to watch a staff member on at least 378 occasions over a single month. The Arizona scheme's board voted unanimously to terminate his contract with cause.
Spain to return millions of euros to holders of foreign investment funds
Ignites Europe: The Spanish government has wrongly overtaxed dividends from foreign funds owned by local investors, and will have to return tens of millions of euros, courts have ruled. Cinco Dias reports that some 20 verdicts have so far been issued against the Spanish ministry of finance, with BlackRock and Vanguard among the beneficiaries of the court rulings, as well as Norges Bank, Schroders and many major institutional investors. Eleven rulings have specified amounts totalling €15m plus interest so far, but the total payout is expected to be much higher.
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