Pension Guidelines Legislation on Hold
Byline: Ben Wright in Glasgow and Alistair Graham
The UK government has backed off from threatening pension funds with legislation that would enforce compliance with guidelines laid out in the Myners report.The government has endorsed the 10 best-practice principles contained in a 2001 report by Paul Myners, former chairman of Gartmore, and warned it would legislate if the pension industry did not comply within two years of the report's publication.
However, speaking at the National Association of Pension Funds (NAPF) conference in Glasgow last week, Paul Kirkman, a Treasury official, appeared to step back from legislating on three main recommendations.
On improving the active stance of pension funds as shareholders, Kirkman said: "We have decided to postpone the proposal to legislate until November 2004."
When challenged that the proposal to improve the measurement and monitoring of transaction costs was being treated differently to other principals, Kirkman agreed and said: "I think it is essentially fair to say that we have subcontracted that issue to the FSA (Financial Services Authority), as it is its area of expertise. …