7 days
7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.
In this 7 Days
- TPR confirms delay to DB funding code in Corporate Plan
- TPR and the FCA publish further guidance on LDI
- Wider Implications Framework annual report published
TPR confirms delay to DB funding code in Corporate Plan
On 21 April 2023, TPR published its Corporate Plan for 2023 to 2024. The Plan confirms that the new DB funding code and regulatory framework is expected to come into force in April 2024. This is a delay to the October 2023 in force date which had been suggested in TPR’s second consultation on the code.
The Corporate Plan outlines TPR’s key priorities for the next 12 months, including ongoing work with the FCA and the DWP to develop a value for money framework following the joint consultation earlier this year (see our Alert for details), and reviewing guidance on DB superfunds. TPR aims to publish its general code of practice (previously known as the single code) by the end of June 2023 (see our Hot Topic for tips on how to prepare for the general code).
TPR and the FCA publish further guidance on LDI
On 24 April 2023, TPR published new guidance setting out further practical steps trustees should take to manage risks when using leveraged LDI. Steps include looking at where LDI fits within a scheme’s investment strategy, testing for resilience, and making sure schemes have the right governance and operational processes in place. This replaces TPR’s October 2022 LDI statement, and its November 2022 LDI guidance.
The FCA has also published recommendations for LDI fund managers on how to increase the resilience of LDI funds.
Wider Implications Framework annual report published
On 19 April 2023, the Financial Ombudsman Service (“FOS”) published an annual report on the 2022 Wider Implications Framework. The Framework was agreed between FOS, TPR, the FSCS, the FCA and MaPS, and sets out a structure for them to work with each other on issues that could have a wider impact across the financial services industry (see 7 Days). The report identifies key achievements over the past 12 months, including work to ensure that the FOS is prepared for the introduction of the FCA’s consumer duty. Changes to the way of working through the framework are expected in the coming year, as the Financial Services and Markets Bill will introduce a duty on the FOS, the FCA and the FSCS to cooperate with each other on certain matters, and to consult others, such as TPR and MaPS, where appropriate.
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