IMA WELCOMES DRAFT PRINCIPLES ON DC PENSION SCHEMES

Responding to the Investment Governance Group's (IGG) consultation paper on draft investment governance principles and best practice guidance for both trust-based and contract-based defined contribution work-based pension schemes, Richard Saunders, Chief Executive of the Investment Management Association (IMA), said:

"Pension provision is moving rapidly towards DC, and the introduction of auto-enrolment from 2012 will give it a further fillip.  But it involves a significant shift of investment risk onto individuals.  The governance process can help scheme members to navigate their way through the complex decisions they will face.  This includes default fund design, good communication and regular monitoring of fund performance.  The draft principles from the IGG DC sub-group are an important contribution to the promotion of good investment governance in DC provision, whatever the underlying delivery architecture.  The IMA fully supports this process."

To view the consultation document, please visit: http://www.thepensionsregulator.gov.uk/pdf/igg-con-doc-2010.pdf 

-ENDS-

Notes for Editors:

The IGG was created in response to a review of the Myners' Principles in 2008.  This industry-led forum has the remit of supporting trustees and employers across all scheme types by providing useful tools and guidance, thus raising the bar on investment governance across the industry. 

The IGG is an industry-led forum and not a regulatory initiative. It is facilitated by the Pensions Regulator and sponsored by HM Treasury and the Department for Work and Pensions.

The HM Treasury document ‘Updating the Myners principles: a response to consultation' can be found at the following location:

http://www.hm-treasury.gov.uk/consult_myners_index.htm

The IGG is composed of individuals with significant knowledge of and experience in the pensions industry as trustees, advisers, member representatives, pensions managers and providers. A list of members of the main Investment Governance Group can be found on the website, here:

http://www.thepensionsregulator.gov.uk/igg/about.aspx

The IGG DC subgroup includes representation from the National Association of Pension Funds (NAPF), Association of British Insurers (ABI), Investment Managers Association (IMA), Society of Pensions Consultants (SPC) the Pensions Regulator (TPR) as well as individuals from providers, trustees, member-nominated trustees, pensions managers and consultants.

Further details on the Investment Governance Group, please visit:

http://www.thepensionsregulator.gov.uk/igg/index.aspx

About Investment Management Association
IMA is the trade body for the UK's £3 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Its role is to represent the industry and promote high standards.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898
Ginny Broad, Head of Communications, IMA, 020 7831 0898 or 07834 089332