The Executive Remuneration Working Group (ERWG), set up last year under the auspices of the Investment Association, has published its much-anticipated final report on simplifying and re-aligning executive pay in the UK. The ERWG hopes that this report will have a major influence on how executive remuneration in FTSE companies is structured. The remit of … Continue Reading
On 24 May 2016 a new General Data Protection Regulation (GDPR) was adopted by the European Union – this is a radical reform which will have a material impact on the operation of pension plans. The GDPR will be directly applicable in all EEA countries (so no implementing legislation is required from the UK Government) … Continue Reading
The UK Financial Reporting Council (the FRC) has just published a report entitled “Corporate Culture and the Role of Boards”. This is the result of a mammoth project kicked off in early 2015 by a round-table with FTSE100 chairmen. Content for the report was produced by a survey of 44 chairmen and 33 company secretaries … Continue Reading
Football may not be coming home, but data protection certainly is! There are many issues stemming from the General Data Protection Regulation (“GDPR”) which will impact on pension plans. We would like to share a few thoughts on just one of these. For the first time, data processors will be directly liable for breaches of … Continue Reading
With the news today that Theresa May will become prime minister this Wednesday, we note with interest reports that she intends to make large companies more accountable by having consumers and employee representatives on boards. This resurrects an idea put to consultation by BIS during Vince Cable’s watch in the run-up to the introduction of … Continue Reading
In the wake of the Brexit vote, several asset managers have closed their UK property funds to redemptions – commonly known as imposing a ‘gate’. This highlights why pension funds and other investors should pay careful attention to the gating provisions in fund documents, both before entering into an investment and as part of the … Continue Reading
Whilst it is too early to tell what the full implications of the Brexit vote will be, we have had a number of enquiries from clients asking what their duties are in relation to their investment strategy. We have therefore set out some general guidelines for action now and in the short to medium term. … Continue Reading
Whilst the impact of the Charges and Governance Regulations on defined contribution pension plans is widely understood, the inconsistent approach to DC AVCs within defined benefit plans has caused some confusion. Unlike the requirements for a “value for money” assessment, chairperson’s statement and charge cap, which do not apply to plans where the only DC … Continue Reading
Although we’re not in the business of crystal ball-gazing, here are some possible issues relating to Brexit and executive pay, particularly share-based remuneration, that we’d like to throw into the pot (unless that’s too much of a mixed metaphor). It seems unlikely that post-Brexit the UK would impose restrictions on overseas issuers offering their shares … Continue Reading
Just a quick reminder that the deadline for making annual returns for UK share schemes relating to the 2015/2016 tax year is 6 July 2016. For tax-advantaged share schemes: share incentive plans (otherwise known as SIPs); company share option plans (CSOPs); savings-related share option schemes (SAYE/Sharesave); and Enterprise Management Incentives (EMI), if a new scheme … Continue Reading
The EU Market Abuse Regulation (MAR), which contains new rules about dealing in shares by directors and “persons discharging managerial responsibilities” (PDMRs), will come into force on 3 July 2016. Unlike the current rules, which are different for companies on the full list and those on AIM, the MAR will apply to all quoted companies. … Continue Reading
After weeks of media headlines criticising FTSE 100 executive remuneration, the Investment Association have finally pulled their rabbit from the hat! The nattily entitled “Executive Remuneration Working Group” set up last year under the auspices of the Investment Association (see our previous blog post) has published its Interim Report (which can be downloaded from the … Continue Reading
Until this week, the remuneration side of this year’s FTSE 100 reporting season was looking decidedly pedestrian, with deckchairs being shuffled ahead of the 2017 AGM season, when all of the remuneration policies that were approved at the 2014 AGMs are up for re-approval. The near 60% vote against the approval of BP’s Directors’ Remuneration … Continue Reading
“Code of practice no. 13: Governance and administration of occupational defined contribution trust-based schemes” may not be the most imaginative of titles, but to coin a popular phrase, “It does what it says on the tin”. It also sets out a vast number of ‘expectations’ to be placed upon trustees – we have counted 126 … Continue Reading
With over a third of the UK FTSE100 having published their DRRs, it looks like the trends identified in our post on 22 March are continuing. A really interesting question to look at, now that nearly half of the FTSE100 companies have published their reports, is whether all the new regulations and guidelines are changing … Continue Reading
Admittedly, it is still early days to asses what’s new in FTSE DRRs for the 2015 accounting period. Even so, it looks like this will be a slow year for developments in DRRs for medium and large listed companies. Of course, that’s probably not surprising. For a company to change its policy requires putting the … Continue Reading
What would be the effect of a Brexit on the UK pensions sector? The short answer is nobody really knows. Nobody can know, in fact, until the two-year exit negotiations have been concluded and, even then, one suspects that the nitty gritty detail will take years to work out thereafter. Let’s begin with what a … Continue Reading
In his eighth Budget as UK Chancellor, George Osborne resisted his radical impulses, apparently in the face of backbench opposition, to overturn pensions tax relief and left pensions alone. In July 2015 HM Treasury issued a consultation “Strengthening the incentive to save: a consultation on pensions tax relief” which prompted a massive reaction from the … Continue Reading
For those UK pension trustee boards out there who are incorporated (i.e. as a trustee company), from 6 April 2016 there will be a new requirement to keep a register of your “persons with significant control” (PSC). In addition, from 30 June 2016 this information will need to be delivered to Companies House where it … Continue Reading
In the last week, it has been reported that Standard Chartered has launched “accountability reviews” to discover whether bonuses can be recovered from any employees found to be responsible for breaches of compliance and risk-management rules. Apparently some bonuses have already been clawed back by the bank and it stated that it would do so … Continue Reading
At the beginning of the 2016 AGM season, there has been a 25.3% vote against Thomas Cook’s directors’ remuneration report. In its announcement, the company said “We have already engaged with certain shareholders to discuss their concerns, which relate to the timing of disclosure of EPS targets in respect of the long-term incentive plan and … Continue Reading
As we explained in our July 2015 article, the UK State Second Pension, and contracting-out, will be abolished from 6 April 2016. As a result, employer and member national insurance contributions will increase for schemes currently contracted-out on a salary related basis. Employers who sponsor such schemes have the power to amend the scheme rules … Continue Reading
The first judicial review of a decision of the Pensions Regulator relating to UK auto-enrolment has been published. The High Court, in The Queen on the application of Fleet Maritime Services (Bermuda) Limited v The Pensions Regulator, considered the appropriate test for determining whether a worker “is working or ordinarily works in Great Britain under … Continue Reading
The Consumer Prices Index versus Retail Prices Index debate remains a live issue for many UK pension plans because of a material variation between rises in CPI and RPI which influences benefit cost. The Occupational Pensions (Revaluation) Order 2015 was laid before Parliament on 24 November, and sets the statutory revaluation rate for 2015 at … Continue Reading
