The Government has brought forward new proposals for the Myners principles of pension fund investment, adding further work is still needed.
In an interim review of investment management processes, several areas of found lacking so revised proposals had been unveiled.
Among the key points raised:The Treasury feels it is the responsibility of the chair of the board to ensure trustees taking investment decisions are familiar with investment issues and the board has sufficient trustees for that purpose; Where funds have more than 5,000 members, the chair of the board and no less than one-third of trustees should be familiar with investment issues; Funds exceeding 5,000 members should have access to in-house investment expertise equivalent at least to one full-time staff member familiar with investment issues; As well as contracting separately for investment and actuarial advice (the current requirement) in relation to investment advice, funds will be required to contract separately for strategic asset allocation and fund manager selection advice;Trustees should provide the results of monitoring of their own performance to members, and ensure key information provided to members is also available on a dedicated fund website.
Paul Myners, author of the original Myners Review, said: “I am very pleased that the principles are now widely accepted as the benchmark of best practice for investment decision-making. But more change is needed before the vision of a much-better functioning system I set out in my original report will be realised.”