July 2020
01Jul

Swiss government outlines framework for sustainable finance

Unveiling a report on sustainable finance on Friday, Finance Minister Ueli Maurer said legislators would stay in the background as a last resort measure. However, the report identified a number of criteria it would monitor and called for improvements in some areas. Banks, pension funds, insurers and asset managers are expected to step up efforts to make sure customers get full disclosure of relevant information on their investments and to better calculate the financial consequences of harmful activities. A...

July 1, 2020
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June 2020

30Jun

UK. Regulator to focus on protecting savers amid Covid

The Pensions Regulator has said it will prioritise protecting savers during the coronavirus pandemic, as well as schemes continue to deliver benefits. The regulator's corporate plan for 2020-21, published this morning (June 29), sets out how it will continue to address the risks to the savers through regulatory interventions and scheme supervision. It also highlights the regulator’s determination to continue to fight against pension scams by taking action against fraudsters and working with other key industry organisations to...

June 30, 2020
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26Jun

US. DOL Proposal Will Chill ESG Corporate Pension Investing, Advocates Say

Advocates of environmental, social, and governance (ESG) investing have decried the US Department of Labor (DOL)’s newest proposal as poison for sustainable investments in pension plans. Read also 2 Danish pension funds chip into latest European green bond On Tuesday, the DOL proposed a rule that said company defined benefit (DB) retirement plans have a fiduciary duty to beneficiaries, not to social causes advanced through ESG investing that could reduce returns or increase risk. Read also The Mixed...

June 26, 2020
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26Jun

UK. Key workers being targeted by pension transfer scammers – APJ

There has been an uptick in the number of key workers being targeted by scammers to transfer their pensions into high-risk self-invested personal pensions (Sipps), APJ Solicitors has said. The law firm revealed that is has been contacted by an increased number of NHS staff and other key workers who have been convinced to transfer their pensions and lose thousands of pounds in the process. It noted that the NHS defined benefit (DB) scheme is “one of the best...

June 26, 2020
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24Jun

US. New Labor Department rule reinforces pension funds’ fiduciary duties.

The Labor Department proposed a rule Tuesday that will govern how the $10.7 trillion invested in private pension plans should be managed in light of the push to consider the environment, social factors and corporate governance, or ESG, when making investment decisions. According to Morningstar, from 2018-19 flows into “sustainable” funds increased nearly fourfold, and the number of conventional funds claiming to consider ESG factors rose to 564 from 81. More than 3,100 institutional investors and businesses that provide...

June 24, 2020
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23Jun

European Parliament Approves CRR “Quick Fix” to Mitigate Economic Consequences of COVID-19

The measures grant relief for EU banks to enhance bank lending to companies and households. Read also Pension funds expect more focused passive approach On 18 June 2020, the European Parliament approved the so-called CRR “quick fix” to Regulation (EU) 575/2013 (Capital Requirement Regulation (CRR)) and Regulation 2019/876 (Capital Requirement Regulation 2 (CRR2)) to mitigate the economic consequences of COVID-19. The temporary measures are, inter alia, intended to enhance credit flows to companies and households, thereby supporting the EU’s economy....

June 23, 2020
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22Jun

UK. TPR urged to nudge savers back into pensions

Employees who have opted out of their workplace pension during the coronavirus crisis should be encouraged back into saving more quickly than usual, MPs have said. Read also UK. Key workers being targeted by pension transfer scammers – APJ The Work and Pensions committee urged the Pensions Regulator (TPR) to consider helping such workers re-enrol sooner than the current three-year timeframe under auto-enrolment rules. Read also India. Govt may restrict foreign investment in pension funds The committee believes this is important...

June 22, 2020
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22Jun

India. Govt may restrict foreign investment in pension funds

Amid LAC tension, the Finance Ministry has proposed restrictions on pension fund investments from any bordering country. Foreign investment in pension funds regulated by the Pension Fund Regulatory and Development Authority is capped at 49 per cent under the automatic route. According to a draft notification circulated for comments on Friday, “A government approval would be required for the investing entity or individual from any of the bordering countries, including China.” The restriction will be applicable from the date...

June 22, 2020
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19Jun

UK. Coronavirus: Why the pension triple lock is back in the spotlight

At present, the state pension increases each year in line with the rising cost of living seen in the CPI measure of inflation, increasing average wages, or 2.5%, whichever of those three is highest. This is known as the triple lock, and it is a Conservative manifesto pledge for the five years of this Parliament. However, the technical aspects of state-paid wages during the coronavirus outbreak could lead to a big rise in the state pension if the government...

June 19, 2020
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18Jun

Boris Johnson Has ‘No Plans’ to Scrap Key U.K. Pension Pledge

British Prime Minister Boris Johnson has “no plans” to abolish a politically sensitive election pledge he made to the U.K.’s pensioners, despite fears among government officials that the policy could be at risk in the pandemic fallout. Officials are aware that the pensions “triple lock,” promised by the last three Conservative prime ministers as a guarantee that retirement incomes will keep rising, may have to be reviewed, a person familiar with the matter said. Johnson’s spokesman played down the...

June 18, 2020
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