Investment powers and duties of pension trustees

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Investment powers and duties of pension trustees
  • Trustee investment powers
  • Investment powers given by the scheme
  • Statutory investment powers
  • Exercise of investment powers in practice
  • Trustee investment duties
  • Duty to comply with the trust deed and rules
  • Common law investment duties
  • Duty of to invest prudently
  • Duty to exercise investment powers for proper purposes
  • More...

Investment powers and duties of pension trustees

CORONAVIRUS (COVID-19) UPDATE: The market volatility caused by coronavirus has led to an increase in DB scheme deficits (see News Analysis: Coronavirus deepens UK pensions deficits, report says) and a decrease in the pension pot value of some DC members.

The Pensions Regulator (TPR) has issued various guidance documents to help trustees, including DC investment: COVID-19 guidance for trustees, key aspects of which include that:
—trustees should review and manage specific risks that may now exist within their portfolios or with their service providers, eg in relation to sector exposures/concentrations in certain funds
—trustees should review any previously agreed investment and risk management decisions to be implemented in the future to ensure they remain appropriate, efficient and do not introduce risks or crystallise losses
—trustees should review their investment governance structures and delegations to ensure they can continue to function and make decisions in the event of trustee incapacity or absence

For more information on the investment implications of coronavirus for pension schemes, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees — Investment impact.
FORTHCOMING DEVELOPMENT: In response to a previous consultation on ‘Investment Innovation and Future Consolidation: A Consultation on the Consideration of Illiquid Assets and the Development of Scale in Occupational Defined Contribution Schemes’ (dated February 2019), the

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