This interesting section that kicks off the day contains the two heavyweights Pensions UK and ABI . Rob Yuille and Zoe Alexander.
You can watch it from 9.30 to 9.55 on this link
Excuse me for giving my reaction as a series of impressions. But I don’t have the privilege of having read their responses, both the ABI and Pensions UK have very large teams of researchers committed to projects such as the Pension Schemes Bill.
Pensions UK say they want guard rails to ensure that the Mansion House report should be the guard rail for schemes be invested but there should be no more than that.
Rob Yuille of the ABI points out that guard rails could do more to protect markets from bubbles.
The conversation is keen to opine on scheme surpluses surpluses should be protected from superfunds. This could be avoided by not messing with the superfund rules in case trustees might be tempted to use one either to give them backing or to take them over.
Clearly this would be against the interests of the ABI who have made up their minds they own DB pensions. The ABI are keen to reduce the opportunity for superfunds to operate so that they continue to operate as they do now (eg as a feeder for annuity providers and not much else). The PLSA do not seem interested in this part of the market.
Pensions UK has it in for the intermediate ranking, applying to commercial master trusts and thereby knock them out of taking on new business.
The ABI would like a longer term intermediate ratings. Provision for a traffic light system of three colours can be balanced against four colours of intermediation, but the problem is that all schemes will work to do the same thing so everyone is green.
The argument carries on to the question of how big is small for consolidation. The PLSA want it not to be too big or too small. Small pot consolidation has had working groups working on it for a decade and it’s hard to see this can be sorted without a Government intervention.
The investment review of investment consultants should be back under review by the Government. There should be work for annuity providers to get invest in more racy assets and other ideas are listed by the ABI.
The ABI wants to see there to be a single way of regulating and unsurprisingly it should be the way PRA and FCA do things.
Pensions UK wants to see more pooling at LGPS. ABI don’t have a view on LGPS but they have a view on decisions people ought to choose. The ABI say that people should have an opt-out of anything they are being nudged into it.
All this went on in front of the Pension Minister who remained quiet throughout. This is quite different from his approach to the PMI and SPP later in the day though the same ideas and the same positions over mandate are brought up,
Rob Yuille ends the session by commending the Bill as doing what the ABI generally wants it to do. I find this a little triumphal. Zoe Alexander from Pensions UK seemed happy enough to tag along behind.
The session came to an abrupt end so that the General Committee could move on to a conversation from Patrick Coyne at TPR and Charlotte Church of FCA.
