May 2020
08May

UK. FCA allowed uninsured adviser to finish nine DB transfers

The regulator allowed an adviser to complete nine defined benefit pension transfers at the end of last year despite the work being excluded from the firm's insurance. The advice firm notified the Financial Conduct Authority in August 2019 that it was unable to renew its professional indemnity insurance to cover defined benefit transfer activities, and was subsequently told to cease writing this type of business and transfer any pipeline clients to another adviser. The firm objected, instead asking...

May 8, 2020
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01May

Canada. Pension plan regulatory relief and COVID-19 – additional measures announced

In our most recent posts, we highlighted some of the regulatory relief available to administrators of Ontario registered pension plans and plans registered in jurisdictions other than Ontario as a result of COVID-19. In this post, we highlight additional relief measures that have been announced for administrators and sponsors of registered pension plans, including the announcement of significant funding relief for sponsors of federally regulated defined benefit registered pension plans. Federal On April 15, 2020, the federal government announced...

May 1, 2020
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April 2020

29Apr

UK. Pension firms issue warning to savers over transfers

To prevent people from losing out, anyone who wants to shift their money will now get a letter from their scheme stating that a transfer is unlikely to be in their best long-term interests. Pension scheme trustees will warn savers of the risks during the pandemic and urge them to consider the decision carefully. Read also ATP, PFA assets plummet as coronavirus hits The warning letter will be signed by watchdog The Pensions Regulator (TPR) , the Financial Conduct Authority (FCA),...

April 29, 2020
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29Apr

Swedish schemes apply for IORP conversion after rules battle

With two days to go before the deadline, the Swedish financial supervisory agency has now received applications from six of the country’s pension funds to convert to the new status of occupational pension company (tjänstepensionsföretag) under the new IORP II-based regulatory regime. The new act on occupational pension companies (2019:742), which puts the EU directive into Swedish law, was passed by the country’s parliament (Riksdag) in December following a long period of wrangling between stakeholders. The authority, Finansinspektionen (FI),...

April 29, 2020
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28Apr

UK. Regulation in this new normal

By David Fairs The Pensions Regulator is anxious to meet the industry’s expectations, but this latest challenge does not come with a manual. Hope William-Smith speaks to David Fairs. It's nearly two years since David Fairs stepped away from more than two decades with KPMG to take the helm at The Pensions Regulator (TPR) as executive director for regulatory policy, analysis and advice.... How bad is the crisis for defined benefit (DB) schemes? Do all trustees need take up the easements we...

April 28, 2020
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24Apr

UK government plans to grant phone-hacking powers to the Pensions Regulator (and others)

UK ministers want to extend the Investigatory Powers Act, better known as the Snooper’s Charter, even further, according to draft legislation that would gift phone-hacking and web-history combing capabilities to five new public bodies, in addition to the more than 50 that already have access to the sprawling surveillance powers. Read also UK. Coronavirus crisis hits occupational pension schemes The bodies poised to receive new comms-hacking powers are a motley crew consisting of the Pensions Regulator, the Civil Nuclear Constabulary...

April 24, 2020
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16Apr

Chile gives pension funds more firepower as virus batters growth

Chile’s Central Bank agreed on Wednesday to increase the maximum investment limits on alternative assets for four of the country’s five public pension funds as it seeks to contain the impact of the coronavirus health crisis on the economy. The bank said in a statement that the move was designed to allow for “diversification of the pension fund portfolios ... to access better combinations of risk and return.” The potential to extend the funds’ investments could provide a welcome...

April 16, 2020
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14Apr

Athene pays $45 mln fine in first settlement of NY pension transfer probe

Athene Holding Ltd ATH.N agreed on Monday to pay a $45 million civil fine to settle charges it conducted insurance business in New York without a license, the first settlement in a probe into an industry where life insurers take over corporate pension plans. Linda Lacewell, superintendent of New York's Department of Financial Services, said Athene's unlicensed Athene Annuity & Life unit conducted 14 large pension risk transfer transactions covering tens of thousands of policy holders, and engaged in...

April 14, 2020
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07Apr

EIOPA publishes second report on costs and pasts performance of insurance based investment products and personal pension products

The European Insurance and Occupations Pensions Authority (EIOPA), has today published its second report on cost and past performance of insurance-based investments products (IBIPs) and personal pension products (PPPs) in the European Union. Read also Cost and past performance 2020 report The report is published following a request from the European Commission to the European Supervisory Authorities to periodically report on the costs and past performance of retail investment products. This report provides an analysis of costs for 2018 and...

April 7, 2020
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03Apr

US. Highlights of Employee Benefits Provisions in the CARES Act

The President recently signed into law the Coronavirus Aid, Relief, and Economic Security Act or “CARES Act.” The CARES Act is primarily a stimulus package that addresses the current coronavirus crisis, and it includes several provisions relating to employee benefit plans. Retirement Plans Penalty-free coronavirus-related distributions — The 10% early withdrawal penalty under Internal Revenue Code (Code) Section 72(t) is waived for “coronavirus-related distributions” of up to $100,000. In addition, the 20% withholding requirement on these distributions does not...

April 3, 2020
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