Source · Select Committees · Work and Pensions Committee
Recommendation 11
11
Accepted
Work with the FCA to review effective implementation of LDI fund guidance for trustee monitoring.
Recommendation
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. (Paragraph 108) Managing system risks
Government Response Summary
TPR is closely collaborating with the FCA and NCAs to review the effective implementation of LDI guidance issued to managers and pooled funds, and will keep guidance under review for amendments if required.
Government Response
Accepted
HM Government
Accepted
TPR is collaborating closely with the FCA and the National Competent Authorities (NCAs) (the Central Bank of Ireland and the Commission de Surveillance du Secteur Financier of Luxemburg) to review whether that guidance issued to LDI managers (by the FCA) and pooled funds (by the NCAs) has been implemented effectively. TPR’s guidance seeks to align with that put out with by the FCA and NCAs, and sets clear expectation on trustees in terms of monitoring the resilience of their LDI arrangements. TPR and FCA are keeping their guidance under review and will amend it if further clarity is required and in light of best practice.