Levy Policy - Investment Risk
On May 24 2007, the Pension Protection Fund published a policy statement on the possible inclusion of investment strategy as a separate risk factor in the risk based levy. This followed an initial consultation document and consultation process that ran through December 2006 and January 2007.
Two thirds of respondents were supportive of the Board’s initial view that investment risk should not be incorporated as an additional risk factor at present, but that key trends ought to be monitored.
Consulting has reinforced the Board’s belief that there would be little consensus amongst stakeholders on the merits of introducing an investment risk factor (with two thirds of consultees against introduction now) or on the best way to balance the tension between a fair factor and a simple factor in this area. It has also sharpened the Board’s appreciation of some of the sensitivities of introducing a factor.
Weighing these, and other, considerations, and recognising that any decision must disappoint some levy payers, the Board has decided that introducing a factor now would be disproportionate in the light of the limited impact when set against the cost.
Please click on the document cover to read the statement in full.
|
