U.K. pension regulator calls for vigilance over Russia risks
U.K. pension fund trustees should be “vigilant” about how the Russian invasion of Ukraine and resulting sanctions might affect them, The Pensions Regulator cautioned in a March 4 guidance.
TPR recognized that some trustees and their advisers have already been reviewing their exposure risks, and set expectations for those reviews.
“We expect you to be vigilant and talk to your advisers about any action which you may need to take, depending on your scheme’s investment, risk management or employer covenant exposures,” as well as alignment with U.K. government sanctions, the guidance said.
Trustees of defined benefit fund should also consider short-term liquidity needs, the potential impact of margin calls and the need to meet short-term member benefit payments, the regulator said.
Another concern is whether an employer or plan sponsor could be affected through direct impacts to operations, suppliers or customers, or by broader macroeconomic factors such as increased inflation, rising fuel prices or foreign-exchange risks. Other potential impacts could come from cyberattacks, scams and other financial crimes, and trustees should review their procedures for preventing and handling them, it said.
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