View more on these topics

LCP warns of impact of credit crunch on DB schemes

Lane Clark & Peacock has warned that the credit crunch may damage defined benefit schemes by damaging scheme sponsors’ access to credit.

LCP head of credit analysis David Poynton says: “Pension fund trustees need to understand whether the employer backing their fund is at risk from the current credit crunch.

“Companies needing to refinance debt in the near future especially those without investment grade credit ratings may find themselves facing higher interest bills and more onerous borrowing terms, reducing the resources available to secure pension benefits. At worst this situation could lead to insolvencies and a reducation in the amounts which pensions schemes can recover from insolvent employers.”

LCP warns that trustees must make sure they understand the sponsor’s current debt management arrangements and group structure.

LCP also says they must also understand the nature and timeline of negotiations for renewal and financing and ensure that arrangements are in place to make sure that the trustees are notified of changes that could weaken a pension scheme’s situation.

Recommended

Record high for consumer satisfaction of IFA service

Almost 90 per cent of consumers are satisfied with IFAs’ service after a meeting, says research by Consensus.Unbiased.co.uk’s ‘Find an IFA service’ reveals that 86 per cent who used the service were satisfied – the highest level of consumer satisfaction since 2000. The research reveals how a representative sample of Unbiased.co.uk’s 600,000 online and hotline […]

Political regulation war on the way?

The political fight to woo the industry and be seen as the masters of deregulation will move up a gear this week with the publication of the Conservative Party’s Economic Competitiveness report.

Student union

It has recently been announced that the UK is enjoying the lowest level of unemployment for many years. The figure still exceeds 1.2 million and there are some of us around who can remember when a figure of one million caused a political storm. Perhaps today we must accept such figures and celebrate the fact that they are no higher.

Energy level

With most major governments concentrating on encouraging the reduction of carbon emissions, an investment in renew-able energy companies is sensible.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com