IA comments on the Mansion House speech
Commenting on the pension reforms announced at the Mansion House speech, Chris Cummings, chief executive of the Investment Association, said:
"The IA welcomes the increasing focus on the importance of getting investment right in the UK pension system, whether that be through Defined Benefit (DB) schemes, Defined Contribution (DC) or variations of the two. For DC, an important first step is to reframe the value discussion in order to focus on long-term returns for savers. The new Long-Term Asset Fund (LTAF) is designed in part to facilitate this, by providing both DC pension savers and retail investors with wider access to private markets, which is a central element of the Mansion House Reforms.
"The further measures now announced to drive cultural and practical change will provide additional, positive impetus. We look forward to working with Government, regulators and investors to help deliver the best possible outcomes in the pensions system, while supporting growth in the wider UK economy."
Commenting on the broader points from the speech, Chris Cummings said:
"The Chancellor’s comments recognise that investment must be at the heart our economy – providing for the financial futures of UK households through pensions that deliver good returns, even in the most challenging economic times, and powering growth by investing in British businesses.
"The recognition of the central role of long term investment is the foundation of successful policy."With the right regulatory framework, pension schemes will be able to invest productively and sustainably, unlocking further investment for innovative growth companies, and improving returns for savers by broadening investment options. In tandem with reforms to the listings regime, this will help the UK to become a more globally attractive place for companies to list, invest and do business. "Achieving this new economic dynamism will require the government to bring together regulators, policymakers, and businesses, to create a forward-looking and internationally competitive investment framework, based on a stable, long term policy approach.
"This will also improve the gilt market, ensuring UK government debt remains attractive to domestic and international investors.
"Delivering these outcomes will require us to strike the right balance between risk and reward and between protection and innovation. Investment managers stand ready to play our part.”
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Arianna Schardt, Communications Executive: [email protected]
T: +44 (0)20 7269 4625
IA press office: [email protected]
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £10 trillion of assets and the investment management industry supports 114,000 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.