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NAPF says UK rules are ‘out of sync’ with other countries

The National Association of Pension Funds has outlined four areas where it believes UK pension regulation is out of sync with international practice.

The NAPF report says issues around defined benefit inflation proofing, DB employer cov- enant regulation, governance requirements and DC contract-based provision need to be addressed. It says mandatory inflation proofing in the UK is out of step with regulation elsewhere.

On DB employer covenant regulation, the NAPF says if mandatory indexation was removed, it would be easier to apply higher funding levels and reduce the need for such stringent regulation of the covenant.

The NAPF believes the UK requirements for governance in trust-based schemes are high and consideration should be given as to whether this approach is proportionate.

It says regulation of contract-based schemes, especially group personal pensions, is out of line with the regulation of similar DC schemes in most other countries.


Triangular bandage

The mortgage industry has welcome the Government’s bank rescue package after spending the last few months pleading for radical action.

Brave and the bold

Writing a column a week in advance is fraught with danger at the best of times. It is especially so now given the incredible speed with which the market is moving. However, I do feel that the politicians have finally woken up to what is going on and the move to recapitalise the banks should be some help. Despite this, I am convinced that a recession is unavoidable – in fact we are probably already in recession.


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