Government to help pension schemes seize long-term opportunities

Measures to encourage pension schemes to invest in a more diverse range of long-term assets, including illiquid products such as venture capital and green infrastructure, were outlined by the Government today.

Additional steps to encourage the consolidation of smaller pension schemes into larger schemes are also included in the consultation.

Minister for Pensions and Financial Inclusion, Guy Opperman, said:

We want all pensions scheme members to benefit from efficient administration, first class investment governance, and access to diversified investment strategies.

The UK has a world-class occupational pension system. We want to encourage scale and innovation by pension schemes, and help drive new investment in important sectors of the economy as we build back better.

The UK is committed to leading the way in the provision of green technology and infrastructure, and we want pension funds to be at the forefront of taking advantage of these long-term opportunities.

Consolidation helps provide the necessary scale to bring the benefits of investing in a broader range of assets to members.

Information about the consultation

• The seven-week consultation was published along today with the Government’s response to a February 2019 consultation ‘Investment Innovation and Future Consolidation’.

• The consultation period begins on 11 September 2020 and runs until 30 October 2020.

• The full consultation for ‘Improving outcomes for members of defined contribution pension schemes’ can be found on the open consultationpage.