Pensions see Brexit boost as Jeremy Hunt vows to axe 'protectionist' EU red tape
Chancellor of the Exchequer Jeremy Hunt
PA
Pension investments in British business look set to receive a Brexit boost as Jeremy Hunt vows to axe “protectionist” EU-derived red tape.
The Chancellor will pledge to cut nearly 100 pieces of “unnecessary, outdated and protectionist” legislation from Brussels in an attempt to propel the UK’s financial services sector post-Brexit.
The move is expected to “increase returns” for pension investments and “unlock capital for our growth businesses”, The Telegraph has revealed.
Hunt will announce the measures, which come after the Government unveiled its so-called Edinburgh Reforms, during a speech at Mansion House on Monday.
A stock image of pensionersPAThe South West Surrey MP is expected to say: “I want to lay out plans to enable our financial services sector to increase returns for pensioners, improve outcomes for investors and unlock capital for our growth businesses.”
A Treasury source also told the broadsheet that EU-era rules have forced companies to produce “excessive transparency documents which have not improved consumer understanding”.
Hunt’s pension plan will outline a series of reforms which have been designed to encourage new UK superfunds and drive more investment into British assets.
The move will focus on creating incentives to bolster pension pots needed to invest in high-growth companies and other illiquid assets.
Jeremy Hunt succeeded Kwasi Kwarteng as Chancellor after last autumn’s mini-budgetPAHunt will build on the work of former Chancellor George Osborne by pushing the current 86 local government pension funds into larger investment pools.
He will also move towards a smaller number of pools in excess of £50billion.
Changes to the “value for money” pensions framework, the role of master trusts and Pensions Protection Fund could soon follow.
The PPF currently protects people in retirement schemes when their employer goes bust but the pensions lifeboat has consistently delivered higher returns through a diverse investment portfolio.
Anti-Brexit campaigners wave Union and European Union flags outside the Houses of ParliamentPAThe Labour Party could also look to use the lifeboat scheme to create a pensions superfund.
A Treasury source said: “This is not going to be a sudden change. If you look at what happened in Canada, it was like over a 20 year period.”
Separate changes to Mifid 2 rules will also come into force following a review by senior City lawyer Rachel Kent.
Mifid was brought in by Brussels in an attempt to reduce conflicts of interest.
However, the directive is believed to have harmed capital markets.
You may like
