The Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations (Northern Ireland) 2019

Amendment of the Occupational Pension Schemes (Investment) Regulations N.I.

2.—(1) The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 2005(1) are amended in accordance with paragraph (2).

(2) In regulation 2(2) (statement of investment principles)—

(a) after paragraph (3)(c) add—

“(d) their policy in relation to the trustees’ arrangement with any asset manager, setting out the following matters or explaining the reasons why any of the following matters are not set out—

(i) how the arrangement with the asset manager incentivises the asset manager to align its investment strategy and decisions with the trustees’ policies mentioned in sub-paragraph (b);

(ii) how that arrangement incentivises the asset manager to make decisions based on assessments about medium to long-term financial and non-financial performance of an issuer of debt or equity and to engage with issuers of debt or equity in order to improve their performance in the medium to long-term;

(iii) how the method (and time horizon) of the evaluation of the asset manager’s performance and the remuneration for asset management services are in line with the trustees’ policies mentioned in sub-paragraph (b);

(iv) how the trustees monitor portfolio turnover costs incurred by the asset manager, and how they define and monitor targeted portfolio turnover or turnover range, and

(v) the duration of the arrangement with the asset manager.”;

(b) in paragraph (4)—

(i) after the definition of “non-financial matters” insert—

““portfolio turnover costs” means the costs incurred as a result of the buying, selling, lending or borrowing of investments;”;

(ii) in the definition of “relevant matters” for “governance, and” substitute “governance;”;

(iii) in the definition of “relevant persons” for “equity.” substitute “equity;”;

(iv) after the definition of “relevant persons” add—

““stakeholder” means a person or a group of persons who has an interest in the issuer of debt or equity;

“targeted portfolio turnover” means the frequency within which the assets of the scheme are expected to be bought or sold;

“time horizon” means the time period over which the trustees evaluate the performance of the asset manager;

“turnover range” means the minimum and maximum frequency within which the assets of the scheme are expected to be bought or sold.”.

Commencement Information

I1 Reg. 2 in operation at 1.10.2019, see reg. 1(2)

(1)

S.R. 2005 No. 569

(2)

Regulation 2 is amended by regulation 4(2) of S.R. 2018 No. 165