The Investment Governance Group (IGG) has today announced the publication of its consultation paper on its draft investment governance principles and best practice guidance for both trust-based and contract-based DC work-based pension schemes.
In its response to a review of the Myners' Principles in 2008, HM Treasury highlighted the need for a set of principles focusing on the characteristics of the DC model.
Bill Galvin, chair of the IGG said:
"The IGG is an industry forum that was given the remit to raise standards of investment governance across the pensions industry. With the publication of these principles for consultation the Group sets out its view of the critical investment governance issues for DC schemes. "
The DC subgroup of the IGG has tailored the Principles and accompanying guidance to maximise the potential for a positive outcome for members through strong investment decision making and governance. Chaired by Victoria Nye from the Investment Management Association, the group comprises scheme member representatives, trustees, consultants and providers, as well as trade association and Government officials.
The proposed Principles address three key areas: accountability and delegation, fund choices and default strategy, and communications with members.
Victoria Nye said:
"As the growth rate of DC provision accelerates, we must put individual members' future welfare at the heart of our efforts to encourage best practice in investment decision-making and governance.
"This framework has been developed as a useful tool for all stakeholders in work place pension schemes. It is not intended to be prescriptive, or be regarded as regulation, but simply to encourage and support employers and trustees in implementing better investment governance in their DC schemes, whatever the size and type."
The IGG are seeking input into this consultation from members, member representatives, trustees, employers, advisers, providers and associations. Apart from comments on the framework, respondents are invited to suggest any further guidance and tools that might assist those responsible for investment governance in fulfilling their roles.
This consultation will run for 12 weeks and responses should be submitted to the IGG Secretariat before 5th May 2010.
To view the consultation document, please visit:
http://www.thepensionsregulator.gov.uk/pdf/igg-con-doc-2010.pdf
To view the full press release:
http://www.thepensionsregulator.gov.uk/pdf/igg-press-release-feb-2010.pdf
Media relations
The Pensions Regulator
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