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Investment: Trustees' duty to disclose
The trustees of an occupational pension scheme are responsible for investing the assets of the scheme on behalf of, and in the best interests of, its beneficiaries.
There is currently no general duty at law for trustees to disclose specific details of the investments held by a pension scheme. However, limited disclosure must be made in relation to a scheme's investments in the following circumstances:
- Annual report – this must be available to beneficiaries within 7 months of the end of each Scheme year. It must state who has managed a scheme's investments during the year and contain an investment report giving a review of the investment performance of the scheme including an assessment of the nature, disposition, marketability, security and valuation of the scheme’s assets. It does not require reference to specific investments.
- Statement of investment principles (“SIP”) - beneficiaries can ask to see this. Among other matters, the SIP must cover the extent (if any) to which the trustees take social, environmental or ethical considerations into account in the selection, retention and realisation of investments.
Author: Caroline Legg