DC investment

The investment challenges facing trustees and managers of DC schemes have never been greater. As risk increasingly moves from the employer to the individual, it is more important than ever to receive clear advice on the relevant legal and regulatory obligations.

Our work focuses on investment fund reviews and in particular the selection of the default investment strategy, negotiating platform agreements, advising on asset security, and advising on decumulation tools. We work with trustees to highlight and advise on the latest issues on their agendas, including the changes to Investment Regulations and the proper consideration of ESG factors.

We also advise trustees and employers on the investment aspects of winding up their DC arrangements, including how to manage the transfer so that risks are minimised and members’ interests are protected.

Recent experience

  • Advising DC trustees, sponsors and employers on the implications of COVID-19 on various investment matters, for example: closure and suspension of DC funds, redirection of contributions, platform and fund changes and the impact of these changes on default and lifestyle arrangements as well as self-select funds
  • Advising on the new ESG requirements for DC schemes with particular reference to forthcoming changes introducing implementation statements
  • Advising IGC and providers of contract-based workplace and personal pensions on new requirements on investment pathways and ESG
  • Advising various trustee clients on mapping across to new funds and related member communications
  • Advising many trustee clients on updates to their SIPs and how to comply with the new investment regulations
  • Negotiating investment platform agreements for trustee clients
  • Agreeing fund novation documentation for retirement bolt-on arrangements which involves replication of funds between the accumulation and decumulation schemes
  • Advising on asset security issues associated with DC platform providers and AVC policies
  • Advising on changes to a scheme default investment strategy in the light of the retirement options and charge cap
  • Advising employers on their obligations in relation to retirement options and default funds
  • Advising personal pension providers on the legal issues arising from changing policy holders’ default investment strategies.