I liked listening to Robin Ellison talk with Nico Aspinall and Darren Philp  on their VFM- Pensions the podcast 

The conversion is varied and mixes insights with levity allowing its 85 minutes to be a good listen. Robin has one big idea and its big enough to repeat on this blog.

Regulation tends to protect itself rather than what it was established to achieve. Financial regulation is – according to Ellison – costing Britain £35 bn a year. This is money that is spent on reducing risk. Earlier this week the FCA made it clear it was going to spend less time regulating banks , for the sake of growth.

Embracing growth as a regulator may mean recognising the cost of regulation in the past may have been too high. We have been following on this blog the impact on pension schemes (as opposed to DC savings schemes) from the mantra to match liabilities with gilts through the use of borrowing. The difference between the Pension Regulator’s and the analysis of PPF and even more the ONS, suggests that the cost of LDI is yet to be properly estimated in Brighton. Taking a rosy view of regulatory failure is an example of protecting the regulator rather than admitting failure.

It is critical that the voice of Ellison is included with those of those who speak with vehemence on behalf of pensions, invested pensions not annuities, an insurance for those with too little income in retirement;- not an amorphous pot of money that does not provide an income.

I am pleased to have had an invite from Bob Compton who at 70 is still running the PLSA East Midlands PLSA group. Here it is, there is an instruction on how you can go as well.

Levity and gravity are once again pals. I look forward to hearing views and news from north of the Scottish border. I will be going to Edinburgh in March for another event and hope that this afternoon session will be enlightening on what is to come.

The PLSA- when the NAPF – had a lot of power- and Robin Ellison was in charge. Robin says on the podcast that PLSA has lost influence with Government as the holdings of meaningful assets has decreased. Our pension (rather than DC saving schemes) are carrying less long-held stocks and doing less to generate growth in the UK economy. This is particularly the case in the private sector.

My friend, the great Chris Sier tells me from his recent analysis that only 4% of the private market investments  made by non Government sponsored DB schemes is staying in the  UK , the remaining 96% is going to overseas companies. The percentage is higher from local Government pension schemes but is not the source of pension investment driving growth.

Ironically, the organisations that invest in private markets in the UK are overseas pensions schemes. This point is remarked on by Robin Ellison when he points out that you cannot as a Government prescribe how the market will function. There is some banter on whether saving schemes should aspire to and ultimately required to be £25bn asset pools. This is , it seems, the financial goal of Government from all the work put into measuring performance for VFM.

I am glad that Robin was given the space to speak as he did and hope that a few of my readers will listen to him. I hope some will go to hear from the PLSA and John Hamilton of Stagecoach and I hope that the comments on my blogs continue to improve what I am saying.

I do my podcast listening in the early hours, typically it is a good way to put me to sleep. I did not fall asleep listening to this podcast. We have the capacity to make a difference. Robin has made a difference. My favorite event he and I spoke at was at the DWP. I spent 20 minutes on something I desired which is to me today forgotten. Robin spoke on a less popular desire – the desire that we do away with the Pension Regulator.

A few years later I am beginning to understood. We need to stop regulating to protect the concept of “de-risking” and start regulating schemes to provide proper pensions in ambitious fashion.

Ellison – a brave human lawyer (almost an oxymoron)