Stuart O’Brien comments on DWP scrapping check on members’ ethical views in Pensions Expert
Partner, Stuart O’Brien, welcomes the DWP’s decision not to require trustees to provide a “statement on member views” when completing their Statement of Investment Principles (‘SIP’).
Commenting in Pensions Expert, O’Brien states: “The legal position is that it’s actually very narrow circumstances in which trustees should be thinking about non-financial things at all. You can’t take them into account if it results in any financial detriment, so it was quite odd to have a requirement that trustees make statements on member views.
He added, “We know trustees have occasionally conflated ethical things with ESG,” arguing that the inclusion of the proposal would have only worsened this situation. Although he does agree that members have a right to know how their money has been invested and so is supportive of the mandatory reports on SIP implementation.
Read the full comment in the article in Pensions Expert.