UK – The actuarial profession has become the latest in a line of pensions industry bodies to express concern over recommendations in the Myners Report on institutional investment, by warning that a number of the Gartmore chairman’s proposals are inappropriate for smaller pension schemes.
In its response to the UK Treasury consultation on Myners, the UK Faculty of Actuaries states that the report takes a “one size fits all” approach to pension funds.
David Kingston, president of the faculty of actuaries, comments: “ While the profession generally welcomes Myners’ recommendation on the role of trustees we believe that they need modification for medium and smaller sized schemes. Proposals including those on paying trustees and the setting up of investment sub-committees are geared towards schemes sponsored by major companies.”
The profession says it believes that proper training should be given to trustees and the focus put on ensuring that enough time is made available for trustees to do the job properly.
A robust framework of legal protection for trustees is also required, says the actuarial group, to ensure that legal fears do not impact on trustees decisions.