HM TREASURY News
Release (32/08) issued by The Government News Network on 31 March 2008
HM Treasury, the
Department for Work and Pensions and The Pensions Regulator (TPR),
are today launching a consultation on updating the Myners
principles, a voluntary set of 'comply or explain'
principles designed to improve trustee investment decision-making
and governance of pension funds.
The consultation responds to last year's National
Association of Pension Fund (NAPF) review Institutional Investment
in the UK: Six Years On, which recommended updating the Myners
principles to ensure the continued spread of best practice among
pension schemes.
The consultation proposes a set of refreshed and simplified,
higher-level principles and the development of a comprehensive
suite of authoritative best practice guidance and tools, which
will help trustees to improve investment decision-making and governance.
Following the NAPF's recommendation that the pensions
industry should take increased ownership of the principles, the
consultation proposes establishing a joint Government-industry
Investment Governance Group to co-own the principles, monitor
their effectiveness and the quality of reporting against them, and
make recommendations for improvements to investment
decision-making and governance.
Exchequer Secretary to the Treasury, Angela Eagle MP, said:
"Paul Myners' goal was that the principles should
become the accepted code of best practice in investment
decision-making and governance, with trustees transparently
assessing their capacity and practice against them".
"The NAPF's review of the Myners principles is an
important step towards that goal. The Government is taking
forward the review's proposals to simplify and update the
principles, and to improve reporting against them."
Minister of State for Pensions Reform, Mike O'Brien MP, said:
"The principles have already done much to help improve
pension trustees' investment decision-making and governance,
and this consultation aims to allow trustees to continue to build
on that progress."
The Pensions Regulator's Chairman, David Norgrove, said:
"The proposed Investment Governance Group, which The
Pensions Regulator would chair, will provide a forum for both
industry and Government to work together to improve trustee
investment decision-making and governance standards further."
NOTES FOR EDITORS:
1. The Myners principles are a voluntary set of 'comply or
explain' principles designed to improve trustee investment
decision-making and governance of pension funds. The principles
stem from a review conducted by Paul Myners in 2001 of the
efficiency of institutional investment decision-making.
2. Following a request from the Government, the NAPF were tasked
with assessing the extent to which, six years on from their
publication, pension fund trustees are applying the Myners
principles; the extent to which scheme governance and the quality
of trusteeship have improved; and whether key issues identified by
the Treasury in 2004 had been addressed.
3. The Government welcomed the findings of significant progress
in the application of the principles in the resulting NAPF review
'Institutional Investment in the UK: Six years on'.
This can be found at: http://www.napf.co.uk
4. The Government consultation launched today proposes to adopt
the NAPF's recommended approach, subject to some changes,
ensuring the principles are more effective, by being less
prescriptive, and more likely to be used and reported against by
trustees. The consultation can be found at:http://www.hm-treasury.gov.uk/consultations_and_legislation/consult_liveindex.cfm
The consultation closes on 23 June 2008.
5. Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on 020 7270 4558, or by email to public.enquiries@hm-treasury.gov.uk
6. This press release and other Treasury publication and
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