The Government says it will launch a consultation on updating the Myners principles in response to the National Association of Pension Fund’s recommendations.
HM Treasury, the Department for Work and Pensions and The Pensions Regulator have launched the consultation to update the voluntary set of ‘comply or explain’ principles designed to improve trustee investment decision-making and governance of pension funds.
Last year, the NAPF said the Myners principles should be updated to ensure the continued spread of best practice among pension schemes.
The consultation proposes a set of simplified, higher-level principles and the development of authoritative best practice guidance and tools, which will help trustees to improve investment decision-making and governance.
The consultation proposes establishing a joint Government-industry Investment Governance Group to co-own the principles, monitor their effectiveness and the quality of reporting against them, and make recommendations for improvements to investment decision-making and governance.
Exchequer Secretary to the Treasury Angela Eagle says: “Paul Myners’ goal was that the principles should become the accepted code of best practice in investment decision-making and governance, with trustees transparently assessing their capacity and practice against them.
“The NAPF’s review of the Myners principles is an important step towards that goal. The Government is taking forward the review’s proposals to simplify and update the principles, and to improve reporting against them.”
Pensions minister Mike O’Brien says: “The principles have already done much to help improve pension trustees’ investment decision-making and governance, and this consultation aims to allow trustees to continue to build on that progress.”
The Pensions Regulator’s chairman David Norgrove says: “The proposed Investment Governance Group, which The Pensions Regulator would chair, will provide a forum for both industry and Government to work together to improve trustee investment decision-making and governance standards further.”