Workplace pensions must follow 5% euro rule
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Standard Life has warned occupational pension scheme trustees to make sure their plans do not have more than 5 per cent invested in their sponsoring employer.
European regulations res-trict pension scheme investmnent in a sponsoring employer, including collective investments, to a maximum of 5 per cent.
An exception has allowed life companies to have up to 10 per cent invested on a transitional basis but this expires this week on September 23.
Standard Life head of policy John Lawson has urged trustees to check their investments to ensure that they do not breach the newly adjusted rules.
He says: “Trustees will have to look through any occupational scheme’s investments so as to make sure they are not exceeding the 5 per cent rule.
“People were worried that the directive might mean Oeics and unit trusts had to be sold off but these fears were exaggerated.”
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