Scheme funder of last resort

Part of Pension Schemes Bill [Lords] – in a Public Bill Committee at 11:15 am on 7th February 2017.

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Photo of Ian Blackford Ian Blackford Shadow SNP Spokesperson (Pensions) 11:15 am, 7th February 2017

I think we all understand that the pension pots themselves are not at risk from the mechanisms we are talking about; it is about the funding of the master trusts. My appeal to the Government is that we have to find a solution to this that will give trust to those who are investing, so that they know that the master trusts themselves will be secure, whether that is from the definition of a funder of last resort, or from particular powers that the regulator has to make sure that, in the event of a trust failure, those assets can be managed in the interests of the fund holder. There is an element of risk—albeit a relatively small one—and we have to try to see whether we can close that down. In the absence of another solution, the Government should think about this clause remaining part of the Bill for now.