The PLSA has been engaging with the Government and regulators to ensure they fully understand pension schemes’ perspective on Brexit.
The UK has the largest pensions sector in the EU. The PLSA’s members provide pensions for 20 million workers, savers and pensioners. Auto-enrolment has brought 10 million more people into pension saving – a great British success story that many other EU Member States are looking to emulate. UK pension funds provide important capital flows to the UK economy, as well as to those of the EU27.
It is therefore important to British savers, and to the employers supporting those pension funds, that the UK economy gets a good Brexit.
WHAT DOES SUCCESS LOOK LIKE?
From the pension scheme perspective, a successful outcome from the Brexit negotiations would include the following:
- for a strong economy: replication of both the current UK-EU framework for free trade in goods and existing EU free trade agreements with third countries. Also, a new immigration policy that continues to allow flows of talent and labour from the EU for the good of the wider economy in general and pension schemes in particular.
- for the right regulation: the maximum possible access to the Single Market in services – while also exempting pension schemes that operate only in the UK from damaging EU pensions regulation, such as a potential solvency-based regime for pension funds.
- for strong financial services: a framework that allows continued free flows of investment services across UK-EU borders and grandfathering of existing contracts so that pension funds can invest and manage their liabilities efficiently.