The UK pensions regulator has abandoned plans to limit investment freedoms for retirement schemes holding billions of pounds of assets, as Boris Johnson and Rishi Sunak urge trustees to plough more cash into supporting the UK recovery.

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The Pensions Regulator has confirmed to the Financial Times that it will not proceed with a proposal, first outlined in March, to cap investment in unquoted assets to no more than a fifth of a portfolio.

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The move had the potential to restrict investment options for about 5,500 “defined benefit” schemes in so-called illiquid assets that cannot be easily traded, such as infrastructure and private equity, as well as start-up businesses.

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The confirmation came as the prime minister and chancellor this week took the unprecedented step of challenging UK institutional investors to consider putting a greater slice of their capital in long-term UK assets.

“TPR is committed to protecting and enhancing savers’ retirement outcomes, so welcomes calls for trustees to consider the full range of investments available to meet that aim,” said David Fairs, executive head of regulatory policy, analysis and advice with the TPR.

“Trustees of pension schemes have an obligation to invest in the best financial interest of their members. Pension schemes generally have a longer-term investment horizon which enables them to consider investing in a wider range of assets.”

Read more @Financial Times