April 2019

It is in investors’ best interest to support the low-carbon transition

Institutional investors of all stripes — from those responsible for paying pensions or endowment grants to those providing wealth management products — collectively manage trillions of dollars globally. They each have varying objectives and portfolio allocations and function within different regulatory requirements and contexts. However, they are typically true long-term investors, allocating across the global economy to deliver returns to members, beneficiaries and stakeholders over multiple years or decades. Recently, evidence has grown to demonstrate substantial climate-related financial implications...

The Case Against Early Retirement

Most people look forward to retirement, a reward for decades of hard work. But like many other pleasures, it may be bad for your health. It may even kill you. How can that be? How can working longer be good for your health? After all, many people dream of—and plan for—retiring early. Strenuous, stressful work can wear people down and damage their health. On the other hand, retirees can relax and reinvigorate themselves. They have time to follow their...

Brazil. Commission Resumes Opinion Review on Pension Reform on Tuesday

The Commission for the Constitution and Justice (CCJ) of the Chamber of Deputies will resume this Tuesday (April 23rd) the examination of the rapporteur’s opinion, Delegate Marcelo Freitas (PSL-MG), on pension reform. Pressed by parties of the ruling base, the parliamentarian may present a complementation. “What we are trying to work on is the construction of a consensus that allows us to discuss a final text that serves the interests of Brazilian society without dismissing the text proposed by...

Canada. Pension protection should be federal priority

With a budget light on details, federal government has an opportunity to protect pensioners Pension protection for Canadians is long overdue. When a company becomes insolvent and its pension is underfunded, pensioners are powerless to intervene and secure their pensions. Sears, Nortel and other corporate pensioners experienced sharp reductions in their annual pension income after those companies failed. In March of this year, Imperial Tobacco filed for protection under the Companies’ Creditors Arrangement Act (CCAA). Yet another group of...

Chilean Government Introduces New Cryptocurrency and Fintech Regulation Bill to Congress

The Minister of Finance of the Chilean government Felipe Larraín announced the introduction of a bill regulating cryptocurrencies and fintech to Congress, Cointelegraph Spain reported on April 15. During his recent stay in the United States, Larraín reportedly noted that the requirements introduced by the new regulation will be proportional to businesses. He explained that the rules will take into account that various companies have different business models, and deliver different services that imply different risks for the users...

Africa’s Biggest Fund Manager Is Said to Court Banker as CEO

Africa’s largest fund manager is said to be considering financial services executive Kennedy Bungane to head the institution, according to people familiar with the matter. Responsible for most South African government workers’ pension funds, the Public Investment Corp. is being probed over allegations of wrongdoing that are currently a subject of a judicial commission of inquiry and resulted in a host of senior departures, including that of Chief Executive Officer Dan Matjila. The PIC, which manages more than 2 trillion rand...

UK. DWP publishes guidance on GMP equalisation

The Department for Work and Pensions has published its first round of guidance to help trustees resolve unequal guaranteed minimum pensions today. A GMP is the minimum pension that an occupational pension scheme, contracted out of the additional state pension between 6 April 1978 and 5 April 1997 on a salary-related basis, has to provide to its members. GMPs were abolished for contracted out service after 5 April 1997. The guidance, developed in conjunction with an industry working group, provides a recommended road...

UK financial watchdog sets out key focus for year ahead

The Financial Conduct Authority (FCA) has said there is an “inherent conflict of interest” when firms use contingent charging structures for DB pension transfers, according to its business plan for 2019/2020, where it assessed its activity for the next financial year. Alongside DB issues, the UK regulator also said it is continuing to consult the industry on further requirements for firms to provide a range of investment pathways to help consumers choose options that meet their needs when entering...

US. Small Business Owners Need a Nudge to Offer Retirement Plans

Data gathered by SCORE, a nonprofit provider of mentor services to U.S. small businesses, shows that 34% of small business owners do not have retirement savings plans for themselves, and the fewer employees a business has, the less likely it is to offer a retirement plan for its employees. Only 28% of businesses with fewer than 10 employees offer retirement plans for employees, 51% of businesses with 10 to 24 employees offer retirement plans, and 63% of businesses with 25 to 49...

Civil society group urge inclusion of older people in Africa

A stakeholder grouping on ageing in Africa has urged governments to reverse the persistent exclusion of older people in public, social, economic, cultural and political spheres.The Stakeholder Group on Ageing in Africa (SGA) noted that African governments and development partners continue to adopt approaches that perpetuate exclusion of older people in Africa’s development, four years after the adoption of the sustainable development goals and 25th anniversary of the International Conference on Population and Development’s Program of Action Beyond 2014. This...