The Pensions Regulator

IGG summary

The function of the Investment Governance Group (IGG) represents a signifcant move in the continued development of institutional investment and governance.

The IGG provides an ideal framework to help develop and maintain investment-related material and guidance for the pensions industry, built around updated principles.

Key characteristics of these principles can be summarised as follows:

• A smaller number of higher-level principles providing more flexibility for different types of schemes in terms of their size, financial position and strategy to explain their investment decision-making approach to stakeholders.
• Principles linked to a body of higher quality, more selective and accessible guidance and trustee tools.
• Greater industry ownership of the principles, guidance and trustee tools.

There will be a more robust approach to disclosure and industry debate, within a voluntary 'comply or explain' approach.

The new framework, reinforced by the establishment of the IGG, gives greater industry ownership of the principles and places the onus on trustees to report on their own practices.