Welcome to your weekly update from the Allen & Overy Pensions team, covering all the latest legal and regulatory developments in the world of occupational pensions.
This week we cover topics including: FCA: TCFD for asset managers and pension providers; Diversity, inclusion and decision-making: TPR blog post.
FCA: TCFD for asset managers and pension providers
The Financial Conduct Authority (FCA) has published a policy statement confirming the introduction of new climate change reporting rules and guidance for asset managers, life insurers and FCA-regulated pension providers. These changes should assist occupational pension scheme trustees by requiring annual publication of consistent and comparable disclosures regarding asset managers’ products and portfolios, supporting an aligned flow of information along the investment chain.
The rules and guidance are set out in a new ‘Environmental, Social and Governance (ESG) Sourcebook’ in the FCA Handbook; the proposals are limited to climate change disclosures at present, but the FCA expects that this will expand over time to cover wider sustainability issues.
The rules apply from 1 January 2022 for the largest in-scope firms and from January 2023 for smaller firms above the GBP5 billion exemption threshold. The first public disclosures are due by 30 June 2023.
Read the policy statement.
Diversity, inclusion and decision-making: TPR blog post
TPR has published a blog post on ‘why trustee board meetings should be more uncomfortable’, highlighting the value of diverse and inclusive trustee boards in enabling individuals to challenge ‘group think’, ultimately leading to better decision-making.
TPR also comments on the work being undertaken by its diversity and inclusion industry working group.
Read the blog post.