Our Response to the Financial Services Growth and Competitiveness Strategy Call for Evidence
Self-belief and confidence about its prospects can be bolstered when worked examples back the strategic aspirations.
That’s the idea set out in C-Suite Pension Strategies’ response to HM Treasury’s Call for Evidence. Points raised are:
“The City and wider financial services sector needs greater confidence and restored self-belief. It should be expected to deliver more for the economy. DB bounce back from the derisking overshoot – given impetus by Government policy commitment, incentives and outcome monitoring – can be a great worked example of what the Growth and Competitiveness Strategy can achieve” William McGrath
Our full Call for Evidence response and supporting documents:
That’s the idea set out in C-Suite Pension Strategies’ response to HM Treasury’s Call for Evidence. Points raised are:
- The Financial Services Growth and Competitiveness Strategy is based on a well considered analysis. What is needed straightaway is a worked example to show it will succeed. Defined Benefit Pension Schemes can provide it. The financial impact is large and it can be immediate – showing policy statements can be backed with incentives which adjust stakeholder thinking. A high expectation of well directed regulatory follow up will help all parties recognise what has been achieved and remains expected of them.
- Our response to the Call for Evidence follows up on suggestions already made to DWP on how to align DB schemes with the growth agenda. A redirection of resources to benefit all stakeholders can be delivered.
- Well funded schemes with strong sponsors can expect to run-on long term with an investment target at over gilts plus 150 basis points. Surpluses are generated above discount rates used to assess liabilities.
- A key driver is to change the “Fiduciary Duty” assessment of the trustees. They have a legal expectation to take account of a package of financial incentives from Government; third party guarantees made available and discretionary benefit improvements.
- Government monitoring of the actual impact of schemes by its regulators (TPR / FRC / CMA) will highlight what additional resource is becoming available to fund investment for growth and improve market liquidity.
“The City and wider financial services sector needs greater confidence and restored self-belief. It should be expected to deliver more for the economy. DB bounce back from the derisking overshoot – given impetus by Government policy commitment, incentives and outcome monitoring – can be a great worked example of what the Growth and Competitiveness Strategy can achieve” William McGrath
Our full Call for Evidence response and supporting documents:
| financial_services_growth_and_competitiveness_strategy_call_for_evidence_-_c-suite_pension_strategies_response.pdf |
| the_unsustainable_esg_pensions_carve_out-nov_2023.pdf |
| longevity_swaps_and_buyins_and_other_unforced_errors_ed_ii.pdf |