Statement of investment principles (SIP)
Produced in partnership with Nick Stones of Pinsent Masons
Statement of investment principles (SIP)

The following Pensions practice note Produced in partnership with Nick Stones of Pinsent Masons provides comprehensive and up to date legal information covering:

  • Statement of investment principles (SIP)
  • Statutory requirement to prepare a SIP
  • Who does the SIP requirement apply to?
  • Contents of SIP
  • Why expand SIP content requirements to cover ESG, stewardship, non-financial matters and the asset manager policy?
  • The Law Commission’s recommendations
  • The Shareholder Rights Directive II
  • SIP policy on compliance with section 36
  • SIP policy on financially material considerations
  • Financially material considerations
  • More...

CORONAVIRUS (COVID-19) UPDATE: The market volatility caused by coronavirus 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 some DB guidance and DC guidance on investment issues to consider. Moreover, it did not expect to take regulatory action if a review of a statement of investment principles (or statement in relation to any default arrangement) was not delayed beyond 30 September 2020. For more information on investment issues relating to the coronavirus pandemic, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees — Investment impact.
FORTHCOMING DEVELOPMENT 1: Further to the March 2018 White Paper ‘Protecting Defined Benefit Pension Schemes—A Stronger Pensions Regulator’, the government expressed the intention to legislate so as to require DB trustee boards to appoint a chair and for that chair to report on key scheme funding decisions to the Pensions Regulator (TPR), including how the funding standards are met and how the scheme funding objective is set in line with a long term funding objective. Reflecting this, the annual funding statement published by TPR in March 2019 also set out TPR’s expectation that trustees and employers of DB schemes should agree a long-term funding target. After a

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