Select committee: Work and Pensions Committee
Recommendation 11
Seventh Report - Defined benefit pensions with Liability Driven Investments
Published 23 Jun 2023
Paragraph 108
Addressed to Department for Work and Pensions
Work and Pensions Committee Defined benefit pensions with Liability Driven Investments All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
To play their part in monitoring LDI, trustees need timely and accurate information from LDI funds and advisers. We welcome the fact that the FCA issued guidance on this in April. TPR should work with the FCA to review whether the guidance the FCA issued to LDI funds in April has been implemented effectively and is providing trustees with the simple mechanism for monitoring LDI that the FPC said was needed.
From: Work and Pensions Committee, Seventh Report - Defined benefit pensions with Liability Driven Investments (HC 826), paragraph 108, 23 June 2023
Government response
The government responded to the whole report on 20 November 2023 (deadline 23 August 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government "welcomes the Committee's report" and sets out progress and proposals for future work on each recommendation, with some recommendations met through regulator monitoring and others left to later consideration.
- On investment consultants, the Government "welcomes" the recommendation to bring them within the FCA's regulatory perimeter, but commits only to take the Committee's views into account as it "assesses its next steps".
- On financial stability, the Government "accepts the FPC's recommendation" that TPR should incorporate financial stability considerations in its decision making and balance them with its objectives as a pensions regulator.
- On the Committee's call to halt the new funding regime, the Government does not say it will halt it. DWP plans to lay the draft regulations "in due course", accompanied by a full impact assessment.
- On disclosure requirements for LDI use, DWP "will consider, in light of TPR's findings, whether changes to disclosure requirements are appropriate". TPR's analysis of 2022 scheme data is to be produced "by the end of 2023".