UK - The Pension Protection Fund (PPF) has announced it will not include investment strategy as a separate risk factor when assessing a pension fund's risk-based levy.

The PPF issued a 79-page consultation in December 2006 asking the pension fund industry to provide thoughts on whether it should treat the investment strategy of each fund as an additional aspect to consider when calculating a fund's risk-based levy.

Details inside the report at the time noted "an analysis of investment risk ought to take account of" the nature of assets, its liabilities and associated "hedging strategies" but acknowledged "this might prove enormously complex".

Its stance was reinforced by 60% of the 28 written responses it received to the consultation so Partha Dasgupta, chief executive of the PPF yesterday told delegates at the NAPF annual conference in Manchester it would not look at investment strategy when setting the risk-based levy.

Earlier PPF findings suggest the impact of investment risk is limited and trying to include the investment risk factor would be disproportionate to the 3% levy reallocation it would create.

Respondents instead said the PPF should continue to monitor key trends affecting investment risk.

In additional news, the Department for Work & Pensions has announced Tony King will succeed David Laverick as the Pensions Ombudsman and Pensions Protection Fund Ombudsman on September 1 2007.

King is currently lead ombudsman responsible for pensions and securities at the Financial Ombudsman Service.