The Pensions Regulator has published guidance for trustees regarding investment in private markets. This guidance follows on from the Government’s Mansion House reforms, announced last July and reconfirmed in the Autumn Statement, which are intended to ‘enable our financial services sector to unlock capital for our most promising industries and increase returns for savers, supporting growth across the wider economy’.

The guidance:

  • Provides an overview of the types of private market assets and how the markets can be accessed;
  • Highlights some of the key opportunities and risks when investing in private markets;
  • Reminds trustees of their legal duties when investing, including that they must predominantly invest in investments traded on regulated markets and maintain a diverse portfolio;
  • Sets out key considerations for trustees – which includes that the trustees have the right knowledge and understanding of private market investments before investing – and the different considerations for defined benefit and defined contribution schemes.

Please click the link below to access the guidance:

https://www.thepensionsregulator.gov.uk/en/document-library/scheme-management-detailed-guidance/funding-and-investment-detailed-guidance/private-markets-investment

Contacts

Please contact us if you would like to discuss any of the issues highlighted in the guidance.

Michael Aherne
Michael Aherne
Partner, Pensions, London
+44 20 7466 7527

Mark Howard
Mark Howard
Of Counsel, Pensions, London
+44 20 3692 9672