November 2020

18Nov

UK. PensionBee mulls float on stock exchange

Pension consolidator PensionBee is seeking to float on the London Stock Trade in a transfer which can see it valued at £300m or extra, based on experiences. In keeping with The Occasions, the digital consolidator is looking for bank advisers for the float and plans to make an appointment earlier than Christmas. Romi Savova, founder and chief govt of PensionBee, advised the paper that robust efficiency in current months had accelerated plans to show PensionBee right into a public...

November 18, 2020
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17Nov

UK. MPs jeopardising pension security without further bill amendments, Altmann says

Speaking ahead of the final Pension Schemes Bill session in the House of Commons next week, Altmann said changes "could make or break" private pensions. The government and regulators have "chosen to remove important amendments passed by cross-party peers" Altmann said, which were "considered crucial to helping defined benefit (DB) schemes to remain open". "The Lords debates highlighted concerns from many open schemes that the new funding code, recently consulted on by The Pensions Regulator, poses an existential threat...

November 17, 2020
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13Nov

UK pensions regulator warns on employer insolvency

The trustees of British defined benefit - or final salary - pension schemes must be ready for possible employer distress or insolvency to protect their members as COVID-19 impacts the economy, the country's pensions watchdog said on Thursday. "Trustees are the first line of defence for savers," Mike Birch, director of supervision at The Pensions Regulator said in a statement. "The faster they act, the more options and greater time they'll have to protect members' retirements. Trustees should know...

November 13, 2020
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12Nov

UK regulator urges united front on pension scams

The initiative - launched on 10 November with support from the Pension Scams Industry Group (PSIG) - encourages providers, advisers and pension scheme trustees to support a pledge to take all possible action to reduce and protect members from scams, and includes clear guidance around appropriate due diligence and best practice. The watchdog is calling on the industry to publicly pledge their support for the initiative. According to Action Fraud, more than £30m has been lost to pension...

November 12, 2020
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11Nov

U.K. deficits worsen in October as COVID-19 resurgence bites

The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index increased 1.3% in October, to £168.2 billion ($217.7 billion). The deficit was £166.1 billion at the end of September. Deficits also worsened for the year ended Oct. 31, from £74.3 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened...

November 11, 2020
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10Nov

UK. Pension professionals call for TPR to focus on covenant sustainability amid Covid-19

The majority (67 per cent) of pension professions believe that The Pensions Regulator (TPR) should adjust its 'tougher' approach to focus on the sustainable growth of scheme sponsors amid the economic impact of Covid-19, according to a survey from Herbert Smith Freehills. The poll, undertaken during a recent webinar, revealed that just 21 per cent thought that the regulator’s existing 'clearer, quicker, tougher' approach, initially adopted in light of recent high-profile corporate failures, should be maintained in the current...

November 10, 2020
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09Nov

UK. DWP guidance nudge claims are ‘pure spin’, says MP

MPs have criticised the Department for Work and Pensions’ (DWP) latest proposals on guidance nudges, saying they lacked determination and would not go far enough to increase uptake. In the latest hearing of the Pension Schemes Bill, Neil Gray, a Scottish National Party MP, labelled the DWP’s claim that a stronger nudge by providers would significantly increase take up of Pension Wise guidance “pure spin”. Mr Gray said: “[...] the cited Maps (Money and Pensions Service) stronger nudge trials...

November 9, 2020
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06Nov

UK. FCA chairman hails ‘significant improvement’ in DB advice

The chairman of the Financial Conduct Authority has hailed significant improvement in the defined benefit transfer advice market following a "systematic and intensive" supervision drive. Speaking at a Treasury select committee meeting yesterday (November 4) Charles Randell praised improvement in the pension advice sector, a market which has been the subject of heavy scrutiny by the regulator in recent years. Mr Randell said the FCA had undertaken a "systematic and intensive" supervision programme with firms with defined benefit...

November 6, 2020
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05Nov

UK. Can superfunds be the silver bullet for DB woes?

Consolidation as a means of achieving better outcomes for pension schemes is a growing trend. This was highlighted in the UK’s Department for Work and Pensions’ (DWP) 2018 White Paper on protecting defined benefit (DB) pension schemes. However, the term ‘consolidation’ is in itself extensive in relation to what it exactly means to pension schemes. According to several investment consultants, consolidation should seek to achieve one or a combination of several goals: create efficiencies of scale; improve governance through...

November 5, 2020
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03Nov

UK. Pensions risk transfer market resilient against Covid-19

The UK pensions risk transfer market has so far shown remarkable resilience to the economic impact of the Covid-19 pandemic. Although market conditions may mean some schemes will be further away from being able to de-risk than they were before the pandemic, the market remains busy and others will still be in a position to proceed with planned risk transfer activity. We can also expect to see a greater volume of forced transfer activity reaching the market in the...

November 3, 2020
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