2/27/2023 0 Comments Jim fink stocks reviews![]() ![]() Chief Executive Officer Charles Counsell has said his officials don’t record in-depth data on the scale of collateral or leverage used by pension programs, nor do they ask every one to provide this information. Ultimate responsibility for the funds at the center of the turmoil rests with The Pensions Regulator, based in the seaside town of Brighton. “It is really time to look at the regulation of LDIs and their accounting,” Mike Rake, ex-president of the Confederation of British Industry, said in an interview. New oversight, accounting reforms or a closer look at the role of trustees could all be in play as the sector picks up their pieces from the last few weeks of chaos. Kwasi Kwarteng, the chancellor whose spending plans marked the start of the selloff, was fired on Friday after just five weeks in the job. In attempting to solve the funding gaps that have felled UK pension plans in the past, the web of investments and hedging tactics created a short-term liquidity crunch and mark-to-market losses of as much as £150 billion ($169 billion). ![]() ![]() The Bank of England stepped in to contain what it saw as “fire sale dynamics” - an emergency measure that’s already prompting questions about why a huge but hitherto sleepy corner of the financial sector could spiral in this way.Īt the heart of the turmoil were funds using liability-driven investments, a form of financial engineering to match pensioners’ guaranteed income, known as defined benefit, with long-term returns. Pensions were caught on the hop by rapidly rising gilt rates after the government’s mini-budget last month, forcing them into a wave of asset sales. (Bloomberg) - Pressure is growing for a sweeping rethink of the UK’s pension fund regulation after the sector’s near-implosion wreaked havoc across financial markets and helped bring about a humiliating government retreat. ![]()
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