UK Chancellor of the Exchequer Gordon Brown has accepted the recommendations of the Myners report on institutional investing in his budget speech to the House of Commons and pledged to scrap the UK’s minimum funding requirement (MFR) for pension funds.
Brown commented: “We will abolish the minimum funding requirement; through tax and regulatory reform make it easier for life insurers and pension funds to invest in venture capital; and we will ensure both a strengthened role for pension fund trustees and a clearer duty on fund managers to promote beneficiaries’ interests.”
In proposals set out in November last year, Myners recommended that the MFR be replaced by a scheme-specific long-term funding solution.