A scheme’s investment advisers and investment managers will help the trustees to manage their investment strategy. However, there are certain legal aspects to this with which we can assist.
There are specific statutory obligations regarding investment duties which the trustees must fulfil. We can advise on these and review the statutory documents, such as the statement of investment principles, for you.
Additionally, we will help by reviewing terms and conditions put in place by investment managers and investment advisers, and, in particular, we can draw the trustees' attention to any unusual provisions limiting liability or seeking to impose any liability on the trustees.
As pension schemes mature, many clients are looking at strategies to buy-out members' benefits through insurance company annuities. This may take place as a general scheme exercise and not necessarily in relation to winding-up the pension scheme.
One approach some schemes wish to take - with the support of the sponsoring employer - is to buy insurance company annuities as pension scheme investments which meet the liabilities for pensions.
Whether structured as a buy-out or buy-in, this exercise can require significant and detailed due diligence. Working with your consultants, we can assist by reviewing policy terms; providing summaries of the benefit structure and any unusual benefit provisions in order to obtain quotes; and advising you on all legal aspects of the transaction.
Recent experience includes:
- Advice to trustees on their statutory investment obligations, including legal aspects relating to the Trustees’ Statement of Investment Principles
- Review of fiduciary management agreements and implications of the CMA requirements for competitive tendering
- Preparation of benefit specifications on a buy-in policy
- Commentary on benefit provisions and confirmation of precise benefits provided