The UK Sustainable Investment and Finance Association (UKSIF) has recently urged the Pensions Regulator to carry out a review into pension scheme trustees for not complying with legal transparency requirements.
As per the new laws which came into force last year, pension scheme trustees are required to prepare a policy which protects investors against financial risks arising from climate change and other environment, social issues.
Market analysis of schemes by the UK Sustainable Investment and Finance Association, UKSIF, found that only one-third had complied with the new rules. Guy Opperman, Minister for Pensions and Financial Inclusion, said, UKSIF should pass the information to the Pensions Regulator to take swift action against anyone not complying with the law.
The findings of the UKSIF’s survey suggested that very large schemes with more than 5,000 members were best at complying with the new requirement, while large and medium schemes had very poor publication rates.
UKSIF in a report published recently said, there should be some guidance from TPR. They can request trustees to report on the actions taken by them to implement the policies. From October 2020 onwards, trustees will have to publish statements as well.
Under this new supervision approach, the regulator is talking to the trustees of major schemes to ensure they are aware of their responsibilities to comply with new investment regulations.