Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
6 - Conflicts of interest
Published online by Cambridge University Press: 05 July 2011
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Abbreviations
- 1 Introduction
- 2 Regulatory and supervisory context for occupational pension provision
- 3 Pension funds and the capital markets
- 4 Social responsibility and fiduciary duties of trustees
- 5 Good trusteeship
- 6 Conflicts of interest
- 7 The pension scheme in the employment package
- 8 Employer support and the development of the sponsor covenant concept
- 9 Establishing the funding requirements of pension schemes
- 10 Effective oversight of pension administration
- 11 Investment governance of defined benefit pension funds
- 12 Hedging investment risk
- 13 Managing longevity risk
- 14 The role of insurance in the occupational pensions market
- 15 Pensions – a corporate perspective
- 16 A note on the investment management of defined contribution schemes
- 17 Effective investment governance in defined contribution schemes
- 18 Inside pension scheme governance
- Index
Summary
Introduction
In essence, a conflict of interest will arise where one party owes obligations to two or more other parties and the interests of those parties conflict. Whilst the potential for conflicts of interest has always existed in the occupational pension scheme regime, the risk of such conflicts arising has increased in recent years. Changes in the scheme funding and section 75 debt regimes, the existence of scheme funding deficits and the introduction of the Pensions Regulator (TPR) and the statutory codification of conflicts in the Companies Act 2006 have all played a part. The heightened risk of conflicts arising calls for a heightened awareness amongst trustees, employers and their professional advisers as to how to manage these risks. In this chapter we consider the framework surrounding conflicts of interest and the practical implications for pension scheme governance.
- Type
- Chapter
- Information
- Good Governance for Pension Schemes , pp. 85 - 103Publisher: Cambridge University PressPrint publication year: 2011