Source · Select Committees · Work and Pensions Committee
Recommendation 14
14
Accepted
Report back on plans for analysing LDI data implications with other regulators.
Recommendation
Given the extent of leverage and the concentration of DB investments, more should have been done to follow up on the risks identified in 2018 by the Bank of England. Collecting better data on LDI is part of what is needed to improve management of systemic risks in future. It will also be essential that DWP and TPR work with other regulators and the Bank of England to analyse its implications. DWP and TPR should report back by the end of October 2023 on how they intend to ensure this happens. (Paragraph 137) 50 Defined benefit pensions with Liability Driven nnvestments
Government Response Summary
The government confirms TPR will collect LDI data through a collaborative framework with FCA and BoE by the end of 2023, and states DWP, HMT, TPR, BoE, and FCA are working together to better manage financial systemic risks.
Government Response
Accepted
HM Government
Accepted
As set out above in response to recommendation 2 the data TPR will be collecting data on LDI, including through a collaborative framework with the FCA and BoE to monitor leverage. This framework will be in place by the end of 2023. DWP with HMT, TPR, BOE and FCA are working together to ensure that they are able to better manage financial systemic risks in pensions both now and in the future. Further details of this are set out in response to recommendation 9 below.