Business
Also today
Rachel Reeves’s plan to mandate how pension funds invest was always a mistake | Nils Pratley
You can understand the motivation – more UK investment by UK funds means faster UK growth – but fiduciary duty trumps allA simple principle lies at the heart of pension investment: the pension manager must invest in the best interest of the client. UK ministers have often wished UK funds would show more home bias by channelling more pensioners’ cash towards domestic assets in the interests of economic growth, but the fundamental rule of the game has always been understood. You don’t mess with the fiduciary duty.Thus, when Rachel Reeves a year ago unveiled her Mansion House accord – a pledge by 17 of the biggest providers to earmark a slice of workplace pensions for UK private assets – it was made clear the arrangement was voluntary. What’s more, as the signatories emphasised, the commitment was “subject to fiduciary duty and the consumer duty” and “dependent on implementation by the government and regulators of critical enablers”. Continue reading...
Leasehold ban in England and Wales unlikely before next general election, minister says
Matthew Pennycook says ending system must be done slowly to avoid hitting housing supply and legal pitfallsA ban on new leasehold properties in England and Wales is unlikely to come into force until after the next election, the housing minister has said, as he defended the government’s piecemeal attempts to dismantle the system.The long-promised end would take years to “switch on”, Matthew Pennycook said, even though the ban of leaseholds on new houses was passed in 2024 and the government intends to pass one on new flats soon. Continue reading...
