Source · Select Committees · Work and Pensions Committee
Recommendation 6
6
Accepted
Paragraph: 72
FPC guidance protecting financial stability welcomed, awaiting Bank of England stress test results.
Conclusion
The objective of the latest Financial Policy Committee (FPC) guidance, to protect financial stability is welcome. We look forward to seeing the results of the Bank of England’s planned stress tests, made more pressing by recent rises in gilt yields.
Government Response Summary
TPR will monitor LDI resilience using various data sources and is committed to becoming data-led by developing a Data, Digital and Technology Directorate, approving new digital services, and publishing a data and digital strategy by year-end.
Paragraph Reference:
72
Government Response
Accepted
HM Government
Accepted
As set out in the response to recommendation 2 TPR will use a range of sources to monitor whether LDI resilience is being maintained – data on buffers collected by the FCA from LDI managers, data from trustees on liquidity levels, and data from trustees and investment consultants on governance mechanisms. TPR is committed to becoming data-led and digitally enabled, so it can better spot and assess risk, identify and prevent harm, and provide even greater value for money to savers and pension schemes. As set out in their Corporate Plan 2023 to 2024,6 a priority for TPR this year is the development and embedding of their Data, Digital and Technology Directorate (DDaT). TPR is rapidly building their capability in this space, including through the recent recruitment of a new Director of Digital Services and a new Director of Data Services, 6 ttps://www.thepensionsregulator.gov.uk/en/document-library/corporate-information/corporate-plans/corporate- plan-2023–24 8 Defined benefit pensions with Liability Driven Investments: Government Response to Committee’s Seventh Report of Session 2022-23 who bring with them significant experience from both the public and private sector. In May, TPR’s Board approved the business case for the development of a number of new digital services for pension schemes, which will be delivered over the next three years. TPR will set out their vision in a data and digital strategy by the end of the financial year. Key objectives for this strategy will include ensuring that they have timely and relevant data, and the automation of processes to drive greater efficiency and consistency.