The Investment Management Association (IMA) in the UK has proposed a set of quality standards for investment governance processes, which can be applied to default
investment strategies of defined contribution (DC) pensions schemes.
The UK trade body has displayed support for the government’s focus on improving the quality of workplace DC pension schemes, and the aim of the proposed standards is to help improve the chance of positive outcomes for the end beneficiaries.
Jonathan Lipkin, director of public policy at the IMA, says: “Independent governance committees are a step in the right direction. With millions of people being auto-enrolled into defined contribution default strategies, good investment governance, which is vital in driving member outcomes, has never been more important.”
The approach will be applicable to both contract and trust-based schemes, and sets targets for all DC schemes to demonstrate that they are delivering on behalf of their members. Lipkin says the aim is to provide a “one stop shop” approach, rather than impose an additional regulatory burden.
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