Carlo Svaluto Moreolo about building an in-house investment management outfit
The UK’s legal system operates differently from those in mainland Europe as it is based on common law – that is, judicial precedent, is taken into account as opposed to adherence to a legal code. Government agencies often prefer to provide guidance, expecting the public to comply, rather than forcing behaviour through specific written rules. At the same time, public debate can spur significant institutional changes before the government takes action.
The UK pension industry is no exception to that situation. The 89 local government-sponsored defined benefit (DB) pension schemes (LGPS) operating across England and Wales have been pooling their assets over the past five years. This activity was orchestrated by the government but it was essentially a voluntary effort.