UK Pension Association Champions Single Regulatory Body

The UK's National Association of Pension Funds has concluded that a single body responsible for pensions is necessary to simplify the regulatory environment.

(May 11, 2011) — The National Association of Pension Funds (NAPF) is calling for a single regulatory body for UK pension schemes.

According to the UK-based association, the Financial Services Authority’s responsibilities for group personal pensions and stakeholder pensions should transfer to The Pensions Regulator (TPR).

The result of the transfer would be a simplified regulatory environment, according to the NAPF. Furthermore, the NAPF asserted that the regulator should urge the establishment and development of super trusts to promote scale and good governance to workplace DC pensions.

While the UK’s NAPF is currently urging added authority on the part of TPR, the association has also criticized the industry watchdog, noting that TPR should be more accountable to those it regulates. In December, a survey by NAPF showed that a large majority of respondents believed the industry watchdog should be more accountable to trustees.

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“We think the Regulator needs to engage more with those it regulates,” NAPF Chief Executive Joanne Segars said in a statement. “It should take a less prescriptive approach to regulation to ensure good quality occupational pension schemes thrive,” she said, adding that the findings send a strong message to the government about TPR’s accountability.

The NAPF’s December survey contrasted with an earlier report from January 2009 by the Better Regulation Executive and National Audit Office, which found the regulator’s stakeholders regard TPR as a “transparent and listening” organization. Yet, NAPF’s Segars stated — following the release of the NAPF’s study — that while she believed the regulator was successful in certain areas, the firm should take a broader, longer-term view.

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

After more than a year of speculation, New Mexico’s State Investment Council (SIC) has filed two lawsuits involving former Investment Officer Gary Bland and associates of then-New Mexico Gov. Bill Richardson.

(May 11, 2011) — The $15.4 billion New Mexico State Investment Council (SIC) has filed two lawsuits in federal and state courts against former investment chief Gary Bland and a number of other people involved in alleged pay-to-play schemes.

The state claims that the individuals named in the case were involved in steering investments to political supporters of former Gov. Bill Richardson.

In the suits filed Friday, May 6, the fund claims breach of fiduciary duties in connection with schemes involving purported placement agents and third-party marketers, who allegedly garnered rewards from marketing investments to the council between 2003 and 2009. The suits seek compensation for millions of dollars and recovery of ill-gotten gains acquired by the defendants at the expense of the New Mexico Permanent Funds. Furthermore, the lawsuits allege that Richardson’s political fund raiser and self-appointed consultant, Anthony Correra, played the role of “de facto gatekeeper” in recommending state investments.

Bland denied the allegations, calling them “absurd,” the Associated Press reported.

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“The State Investment Council takes this action today in hopes of recovering millions of dollars improperly taken from the citizens of New Mexico by those who violated their professional duties and the public trust, and their cronies who participated in and profited from such breaches of duty,” State Investment Officer Steve Moise said in a statement. “Quite simply, this is the right thing to do.”

Governor Susana Martinez, chair of the State Investment Council, added in the release by the New Mexico fund: “As we wait for justice in the criminal courts, we must aggressively pursue legal action of our own. These efforts must continue until all responsible parties are held accountable for the abuses that occurred here in New Mexico.”

To avoid apparent conflicts of interest, the Governor asserted in a statement that investment managers who entered into payment arrangements with third party placement agents to obtain SIC investment business should approach the Attorney General’s Office voluntarily and fully disclose the details of those arrangements “before the Attorney General knocks on their doors.”

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742