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ABI responds to announcement on interim regime for pensions superfunds by The Pensions Regulator

The ABI has commented this morning on the announcement, by The Pensions Regulator of a new interim regime for pensions superfunds

On the announcement, Yvonne Braun, Director of Policy, Long-Term Savings and Protection at the Association of British Insurers, said:

"Despite being two years in the making, the interim regime is light-touch, short on detail, has only limited powers for the regulator, and risks pension savers being sold down the river.

It is difficult to see how trustees will feel comfortable that their scheme members will be in safe hands if transferred to a ‘Superfund’. Members of Defined Benefit pension schemes have been carefully saving for retirement, and rightly expect any for-profit organisation to protect their money and be subject to rigorous regulation and supervision. This guidance puts this at risk.

The temporary fix could prevent the worst excesses in the market as the economic impact of Covid-19 starts to bite, but it is a poor alternative to much needed legislation. Tougher new laws will help ensure that workers have the high level of protection they expect for their pension.”

Last updated 18/06/2020