The National Association of Pension Funds is to carry out a "thorough review of the Myners principles" over the next year.
In a speech to the Scottish Financial Services Industry, Ed Balls, Economic Secretary to the Treasury, outlined the way the government has investigated ways to “improve the investment chain mechanism” including the publication of the Myners review in 2001.
Balls says the work carried out by Paul Myners highlighted a number of problems resulting from the challenges facing part-time and generally unpaid trustees, such as poor evaluations of advisers and their advice and a reliance on a small number of investment consultants.
As a result Balls says while the Myners principles, which include a framework for more effective trusteeship, have had a significant impact, he says it is important the government does not stop there.
“So I am pleased the NAPF has agreed to undertake a thorough review of the Myners principles over the course of next year, which will be a great platform for debate on how the government works with the industry to keep up the momentum,” adds Balls.
Over the next year Balls says NAPF will be “able to look at all the outstanding issues which impact on the principles' effectiveness, including the substantial changes to the regulatory and investment environment which have occurred”.
In addition Balls says by handing the review over to the NAPF, the process will also be able to take up the issues from the current consultation on potential revisions to the Myners principles, which he suggests will be more effective if they are “now considered in conjunction with all the other issues arising from the NAPF review”.
In his speech Balls suggests the decision to outsource the review of Myners to the NAPF rather than the Treasury, which conducted the last review in 2004, is because a “voluntary approach like Myners works on the basis of convincing people and spreading best practice, not through grudging 'tick box' compliance”.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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