NAPF calls pensions to be excluded from ASB rules
The National Association of Pension Funds has hit back at proposals for schemes to disclose details about the financial instruments they use.
Responding to the Accounting Standards Board’s consultation on proposed financial reporting rules, NAPF said proposals to include details about tools such as derivatives and hedge funds used in financial reports would add costs to pension schemes.
NAPF, which otherwise praised the plans for simplifying and consolidating the UK’s accounting practices, warned the disclosure requirements could create major costs for large pension schemes with more complex investment and risk mitigation strategies.
Darren Philp, policy director for NAPF, said: “We support greater transparency but these new rules will do nothing to help scheme members and their advisers. Instead they will increase the costs for large pension funds.
“The ASB should remove pension funds from the category of financial institutions and eliminate the additional disclosure requirements. The existing disclosures are perfectly adequate as they are.”
David Trenner, technical director of Glasgow-based Intelligent Pensions, said: “I was surprised to see NAPF saying pension schemes should not disclose details of financial instruments being used.
“I do not see why this would create major costs. It would seem to me that if a pension fund is investing in aspects that have brought down institutions in the past, then it should not do so. Pension schemes should already be doing risk mitigation.”