October 2023
04Oct

US. SEC proposes changes for registered index-linked annuities

The SEC proposed rule amendments that would customize the registration form and disclosure requirements for registered index-linked annuities, also known as RILAs. The move comes after Congress passed a law in December directing the SEC to do so. "Given the complexity and growing popularity of RILAs, it is important that investors receive the information they need — in plain English — to make informed investment decisions," SEC Chair Gary Gensler said in a news release Sept. 29. "Implementing Congress' mandate, today's...

October 4, 2023
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03Oct

Japan wants companies to disclose pension fund performance

Japan is moving to urge companies to disclose their pension plan returns, Nikkei has learned, as part of an effort to improve how the nation's retirement savings are invested. The government will begin discussions Wednesday in a new panel on strengthening Japan's asset management sector. Proposed topics include disclosures on pension fund performance, ways to attract more talent in the field and allowing smaller companies to operate joint pension funds. The conclusions will be incorporated into a national plan to bolster...

October 3, 2023
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02Oct

UK. DWP urged to assess case for formal regulation of pension scheme administrators

The Department for Work and Pensions (DWP) should assess the case for bringing administrators into formal regulation, an independent review of The Pensions Regulator (TPR) says The review, published last month, was led by Mary Starks - a former director of competition and chief economist at the Financial Conduct Authority - who was appointed to lead the review into TPR at the beginning of this year. Starks found TPR's supervision team currently engages with three pension scheme administrators on a voluntary basis but said...

October 2, 2023
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September 2023
29Sep

TPR issues first climate-related reporting penalty to ExxonMobil’s U.K. plan

The U.K.'s Pensions Regulator issued its first fine against a pension fund for failing to publish a report on how its trustees manage and govern climate-related risks and opportunities, delivering a £5,000 ($6,118) penalty to the ExxonMobil Pension Plan, Leatherhead, England. U.K. pension funds with more than £5 billion in assets have been required to publish a climate change report by a set deadline since October 2021. The report must be made publicly available on a website so participants can...

September 29, 2023
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29Sep

Best Practices for Defined Contribution Plans

By Nicole M. Boyson This paper provides operational and investment recommendations for ERISA 403(b) plans. Based on a review of academic literature and an empirical analysis, I recommend that plan investment menus include mostly passive index funds covering key investment categories, a full suite of index-based target date funds as the auto-enroll qualified default investment alternative, and a self-directed brokerage option. I also recommend that plan sponsors adhere to and regularly review the plan’s Investment Policy Statement, that the Retirement...

September 29, 2023
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27Sep

Comparing ESG regulation globally remains elusive – report

Comparing global regulatory demands on ESG funds will continue to be elusive, according to a regulatory update from ISS ESG published Sept. 21. Experts at the Institutional Shareholder Services' sustainable investment arm reviewed current and proposed regulations in the European Union, U.K., U.S., Canada, Australia, Hong Kong, Singapore and Japan, and surmised "that navigating the emerging regimes will remain a challenge for the foreseeable future," the 2023 Global Regulatory Update said. It noted that two major sustainability reporting standards were finalized in 2023:...

September 27, 2023
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21Sep

US. Fed holds interest rates steady

Federal Reserve officials on Sept. 20 held interest rates steady and signaled one more rate increase this year as the central bank continues its quest to tamp down inflation without overcooling the economy. The Federal Open Market Committee left the federal funds rate unchanged at a range of 5.25% to 5.5% following its two-day meeting. The committee in recent months has alternated between hikes and pauses — it approved a quarter-point increase at its last meeting in July but did...

September 21, 2023
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20Sep

UK: Buying A Distressed Business With A Defined Benefit Pension Scheme

Alexandra Wood, Devi Shah and Andrew Block discuss the additional complexities which a PE firm will face when acquiring a distressed business with a defined benefit occupational pension scheme, in light of the protections afforded by both the UK legislative framework and the role and support of the Pensions Regulator. Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown...

September 20, 2023
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19Sep

Ghana. NPRA to prosecute employers who default in paying pensions

The National Pensions Regulatory Authority (NPRA) will continue to track all defaulting employers and put them before the law courts to retrieve the pension monies due employees. Mr. David Tetteh-Amey Abbey, the Deputy Chief Executive Officer (CEO), NPRA, said the Authority would do this to demonstrate its commitment to the financial well-being of employees and their families. “This is what makes the Authority great. It is imperative that we emphasise the significance of regular contributions to pension schemes,” he said. Mr. Abbey...

September 19, 2023
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18Sep

UK: Pensions Regulator Updates DC Schemes Guidance On Illiquid Assets Disclosure

The guidance has been updated to help DC pension schemes comply with new regulations designed to ensure they consider all the investment opportunities available to achieve best value for savers. On the first occasion when the SIP is updated after October 1, 2023, trustees will have to state their policy on investing in illiquid assets in the default SIP. They will also be required to disclose the asset class breakdown for each of their scheme's default arrangements in the Chair's...

September 18, 2023
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