Written question asked by Lord Garnier (Conservative), in the House of Commons. It was due for an answer on Thursday, 20 March 1997. It was answered by Oliver Heald (Conservative) on Thursday, 20 March 1997 on behalf of the Department of Social Security.

Dept of Social Security

Question: What steps he plans to take to ensure that prudent investment principles are adopted by scheme managers under Basic Pension Plus.

Answer: Mr. Garnier: To ask the Secretary of State for Social Security what steps he plans to take to ensure that prudent investment principles are adopted by scheme managers under basic pension plus. [21397] Mr. Heald: We would discuss with the pensions industry regulators and others any appropriate restrictions to guard against exploitation of the Government guarantee on the basic pension. We may introduce legislation to require scheme managers to publish, and be liable for adhering to, a statement of investment principles based on the "prudent person" principle; to prescribe rules on the amounts of funds to be allocated to different types of asset, and to require pension providers to disregard the existence of the Government guarantee in investment decisions.

Secondary information

Type: Written question
Reference: 21397; 292 c906W
Session: 1996-97
Subjects: Consumers Investment Financial services Protection Pensions Personal pensions Pension funds State retirement pensions