PENSION funds have "abrogated their responsibility" to the
In a note to investors, Londonlisted investment bank
The calls come after the Chancellor revealed plans for a major shake-up of rules ahead of the budget over the weekend that would see money managers forced to publish the makeup of their investments.
Under the proposals, underperforming schemes would also be banned from taking on new members in a bid to accelerate consolidation of the
The measures are seen as a means of encouraging domestic pension funds to back the British stock market after a drop-off in investment over the past two decades. Just four per cent of the British stock market is now held by pension funds, down from 39 per cent in 2000, according to the think tank New Financial.
In a note to investors,
"Pension funds have largely abrogated their responsibility to the
"There are several reasons for this, including risk aversion, tax position and companies' desire to offload their schemes. Pension funds used to be core investors in listed companies and specifically
While the
Hall called on funds to begin preparing for the changes now.
However, Hunt's plans faced some resistance over the weekend from regulators. The
The calls are also likely to unsettle some pension industry figures who have claimed that pension fund managers have a responsibility to their members rather than the health of the
(c) 2024 City A.M., source