December 2020

South African expats face stricter pension rules

The South African government has tabled a tax relief meaure that would benefit expats stuck in the country during lockdown, while passing a bill that would potentially make it more difficult for them to access their pension funds until three years after they emigrate. South African expats earning up to ZAR1.25m (£61,000, $81,000, €68,000) through foreign employment need to spend at least 183 days out of the country during a 12-month period, of which 60 days must be continuous,...

Europe’s ‘Ambitious Plans’ for ESG Disclosure Rules

New European rules on sustainability disclosure requirements in the financial services sector take effect in March, affecting institutions such as banks, insurance companies, pension funds, and investment firms. And while details of the Sustainable Finance Disclosure Regulation (SFDR) have not been finalized, law firm Akin Gump says the move to increase requirements shows the EU and the UK have “ambitious plans” for improving environmental, social, and governance (ESG) disclosures for financial firms. In 2018, the European Commission established an...

China’s Regulators Vow ‘Special’ Oversight of Fintech Giants

China plans to impose “special and innovative regulatory measures” on financial technology behemoths such as Jack Ma’s Ant Group Co. to eliminate monopolistic practices and strengthen risk controls. Advances in technology have brought tremendous change to the financial sector, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission and Party Secretary of the central bank, wrote in an article outlining regulations over the next five years. It was cited in the official Shanghai Securities News. Financial innovations...

November 2020

UK regulator urges united front on pension scams

The initiative - launched on 10 November with support from the Pension Scams Industry Group (PSIG) - encourages providers, advisers and pension scheme trustees to support a pledge to take all possible action to reduce and protect members from scams, and includes clear guidance around appropriate due diligence and best practice. The watchdog is calling on the industry to publicly pledge their support for the initiative. According to Action Fraud, more than £30m has been lost to pension...

UK. Pension professionals call for TPR to focus on covenant sustainability amid Covid-19

The majority (67 per cent) of pension professions believe that The Pensions Regulator (TPR) should adjust its 'tougher' approach to focus on the sustainable growth of scheme sponsors amid the economic impact of Covid-19, according to a survey from Herbert Smith Freehills. The poll, undertaken during a recent webinar, revealed that just 21 per cent thought that the regulator’s existing 'clearer, quicker, tougher' approach, initially adopted in light of recent high-profile corporate failures, should be maintained in the current...

US. 5 Ways President Biden May Make Lasting Changes To Retirement

While President-elect Biden and a nation wait for President Trump to concede the election, focus turns to how a Biden administration will lead. Biden has put forth many policy initiatives, including significant changes to retirement savings and Social Security. His ability to implement his vision depends in large part on Georgia. Two Senate races are headed to run-off elections in January. It seems likely that at least one race will go to a Republican, giving the GOP a razor-thin...

UK. DWP guidance nudge claims are ‘pure spin’, says MP

MPs have criticised the Department for Work and Pensions’ (DWP) latest proposals on guidance nudges, saying they lacked determination and would not go far enough to increase uptake. In the latest hearing of the Pension Schemes Bill, Neil Gray, a Scottish National Party MP, labelled the DWP’s claim that a stronger nudge by providers would significantly increase take up of Pension Wise guidance “pure spin”. Mr Gray said: “[...] the cited Maps (Money and Pensions Service) stronger nudge trials...

UK. FCA chairman hails ‘significant improvement’ in DB advice

The chairman of the Financial Conduct Authority has hailed significant improvement in the defined benefit transfer advice market following a "systematic and intensive" supervision drive. Speaking at a Treasury select committee meeting yesterday (November 4) Charles Randell praised improvement in the pension advice sector, a market which has been the subject of heavy scrutiny by the regulator in recent years. Mr Randell said the FCA had undertaken a "systematic and intensive" supervision programme with firms with defined benefit...

Ireland. Minister Humphreys announces the Establishment of the Pensions Commission

The Minister for Social Protection, Heather Humphreys, T.D., has today secured Government approval to establish the Commission on Pensions. The Commission, which will be chaired by Ms Josephine Feehily, will examine sustainability and eligibility issues in respect of State Pension arrangements and will outline options for Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements. Read also UK. Can superfunds be the silver bullet for DB woes? The membership of the Commission reflects the...

October 2020

UK. DWP launches ‘Stronger Nudge’ plans to boost Pension Wise usage

Pension Wise is a public website/service set up by government to help people understand their pensions and seek additional guidance if needed. Today, the Department for Work and Pensions (DWP) has launched plans to boost pension guidance take up by "nudging" people towards the help available. Pension assets can be notoriously confusing and tricky to manage given their complexity and rules which change from scheme to scheme. To address these issues, the government set up Pension Wise in 2015...