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13 February 2007, Tony Hobman outlines the Pensions Regulator’s approach to improving
scheme governance
In yesterday’s speech to trustees and employers, Tony Hobman, Chief Executive of the Pensions Regulator set out the regulator’s approach to improving scheme governance and challenged the industry to tackle the risks inherent to DC schemes, looking forward to the publication of the regulator’s governance statement in April 2007.
Speaking at the first South West and Wales pensions conference hosted by the Punter Southall Group and law firm Burges Salmon, Mr Hobman outlined the regulator’s guidance and codes of practice relevant to these issues, including their strong programme of education and support epitomised by the development of the online ‘Trustee toolkit’, aimed at helping trustees to reach the levels of knowledge and understanding required under legislation.
Commenting on the regulatory statement on governance due in April 2007, for which the consultation period ended last Friday, Tony Hobman said:
“We are not just a DB regulator as 85% of all UK Pension schemes are small DC schemes, most of which face the following five key risk areas:
- Poor administration
- Poor investment practice
- Unduly high charges
- Poor decisions on retirement choices
- Lack of member awareness
Our aim is to apply reasonable judgement to innovation and we encourage early discussion between the parties involved and the regulator to ensure this. These issues will be addressed in the April statement.”
He also spoke at length on the major issues relating to the funding of defined benefit occupational pension schemes, as highlighted in the recently published ‘Purple Book’*, particularly emphasising the sensitivity of funding requirements to changes in financial markets and possible further improvements in longevity.
* A joint study with the PPF of risks currently facing DB schemes.
For more information please contact:
Penrose Financial
Mani Pillai, Penrose
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020 7786 4888
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Roman Townsend, Penrose
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020 7786 4888
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Sarah Caddy, Penrose
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020 7786 4888
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Punter Southall Group
The Punter Southall Group provides a complete range of employee benefit and investmentrelated
services for companies, pension scheme trustees and individuals. It incorporates the
following businesses:
- Punter Southall – consulting actuaries
- Punter Southall Transaction Services – corporate transaction advice
- Punter Southall Financial Management – independent financial advice for individuals
and corporate benefits
- PSolve Asset Solutions – investment advice and investment management for pension
funds and other large investments
- PSigma Investment Management – investment management for individuals
- PS Independent Trustees – independent trustee services
With offices in London, Guildford, Wokingham, Edinburgh, Birmingham and Bristol, the
Punter Southall Group companies collectively have hundreds of corporate, pension
scheme, charity and individual clients.
Burges Salmon
Burges Salmon LLP is one of the UK's leading commercial law firms, providing a
comprehensive service for business and private individuals in the UK and overseas. With
some 600 partners and staff operating from its Bristol base, the firm is widely recognised for
the quality of its expertise in a range of areas, including corporate, commercial, litigation,
property and tax & trusts.
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