Member

Overall, the Government concluded that there was clear evidence that removing the exemption would reduce pension funds’ ability to invest in productive assets; and that this could have an adverse effect on the retirement benefits of future pensioners. The extent to which removing the exemption would generate direct financial stability benefits was unclear. The Government decided that, on balance, it was appropriate to maintain the exemption for the long term. The Government will, however, keep this policy under review in co-ordination with the financial services regulators. If there are changes to market dynamics or wider government reforms that have a material impact on the value of mandatory clearing for pension funds, the Government may reassess this issue.