Secretary to the Treasury Ruth Kelly has announced the launch of a two-stage review into how well th...
Secretary to the Treasury Ruth Kelly has announced the launch of a two-stage review into how well the pensions industry is adopting principles laid down by the Myners Report published in 2001.
The review is due to finish by the end of this year.
The first step will consist of a qualitative survey due to be reported by the summer, followed by a quantitative survey to be published "by the end of the year".
Kelly says the review "will set out a clear picture of progress toward the implementation of the Myners recommendations and enable us to develop a clear understanding of where the voluntary approach is working and where it is not."
The government has already said that if the review shows that the industry's voluntary approach is lacking, it will legislate to push through the changes recommended by Myners, particularly in relation to the issue of "unnecessary costs".
The Myners principles are intended to make pension pot administration more efficient both with respect to charges applied by providers and in terms of investment decisions made by trustees.
Kelly says the government's review will also build on the results of another FSA consultation paper set to be published "in the very near future", which will make recommendations in the area of soft commission and bundling.
Speaking at the NAPF annual conference in Edinburth, Kelly has also also countered criticism of the findings of the Higgs Review into non-executive directorships.
She says the recommendations will not lead to power struggles at board level involving chairmen who feel undermined by proposed senior non-execs representing shareholders' interests.
Kelly also argues that there is no crisis in pensions, saying: "Most people are being paid the pension they were promised [and] most are saving for their retirement, either in pensions or in other forms."
Use of the words "in other forms" suggests the government may be looking to include other assets, such as property, in any definition of savings that the Pensions White Paper may put forward if and when it is tabled.
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