The operational and governance complexities of recapitalizing pooled funds were a primary driver of the liability-driven investment (LDI) market crisis last year, the Work and Pensions Committee (WPC) has heard.
Diageo – the drinks company that owns brands such Johnnie Walker, Guinness and Smirnoff – provided an interim credit facility of £1bn for two of its pension schemes as a result of the liability-driven investment (LDI) crisis.
Schemes considering legal action against liability-driven investment (LDI) managers for losses sustained during last year’s bond market turmoil will have “no easy road” to compensation, lawyers say.
The Pensions Regulator (TPR) has called for increased regulation for superfunds and defined benefit (DB) master trusts and says there is a “strong case” for an authorisation regime to be introduced for professional trustees.
Regulatory action should be taken by The Pensions Regulator (TPR), in co-ordination with the Financial Conduct Authority and overseas regulators, to improve the resilience of liability-driven investment (LDI) funds, the Bank of England’s Financial Policy Committee (FPC) says.