FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

Pension Funds and Social Investment – final government report

June 18th, 2018

sun-and-clouds-iStock_000004631244XSmall1This morning, 18 June 2018, the Government published its final response to the 2017 Law Commission report on pension funds and social investment. The following information was published today by UKSIF (whilst I was working on our MiFID2 response*!):

  • “The foreword is written by Guy Opperman MP, Minister for Pensions and Financial Inclusion, and Tracey Crouch MP, Minister for Sport and Civil Society. It notes the Government’s intention to take forward the Law Commission’s recommendations and announces a consultation from DWP on trust-based pensions with a view to implementing the changes by October 2019.Specifically this will mean a change to the law to require trustees ‘to consider the impacts on their investments from a changing environment, corporate governance and social trends’.
  • In addition, trustees will be expected to have a policy on how they take account of members’ view, such as on social impact. In an equally significant move, the FCA has also announced it will also take forward and build upon the recommendations for contract-based pension schemes, by consulting on rule changes for Independent Governance Committees (IGCs), although this will not take place until next year.

This is hugely significant news which is likely to provide a huge boost for responsible investors in the UK. It represents a big win for UKSIF, our members and everyone in the responsible investment sector who has been campaigning on this issue over the past five years and longer.”

I would like to thank UKSIF for both its hard work in this area and also for circulating today’s update.  This has been a major piece of work and indeed is a big win for our sector.

My involvement in this was earlier in the process and I am delighted that the linked PFS guide references our Fund EcoMarket tool (as did the earlier government report) – as I had a number of meetings with contributors to the government report.

Next stop (for those who are interested!) please respond to MiFID2 consultation by 21 June 2018, this is a further major ESG / SRI milestone!

*see previous blog.

 

 

Further UKSIF comments.

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

Fund EcoMarket roundup and top 100 searches in 2020
January 6, 2021

  Happy New Year…   I very much hope you and yours are well and coping with the situation we find ourselves in once again. COVID, aside (and that is the last time I will mention it) 2020 was another great year for SRI Services. This blog is to give you a quick overview of how […]

Building Trust in Sustainable Investment – FCA keynote speech at SRI Services Good Money Week event
November 26, 2020

On 21 October 2020 Richard Monks – Director of Strategy at the FCA – kindly gave the keynote speech at our annual ‘SRI Services and Partners Good Money Week event’. There is a transcript of his speech available on the FCA website here. We were delighted with the content of the speech and welcome the […]

UK retail SRI market size
November 24, 2020

EIRIS Foundation release new fund market size estimate during Good Money Week. The following information was recently published by the EIRIS Foundation: “Investment in UK green and ethical funds has grown significantly in 2020 to £33.5 billion according to our latest research on the size of the retail market. We were pleased to report this […]