Member

Finally, what desire do they and the regulator have for flexibility and diversity of investment strategy within open schemes? If they all invest similarly, surely there is a dangerous concentration of risk. We saw some of that in 2022 when low-volatility matching assets turned out to be more volatile than the highest-volatility asset type that one might have thought of. The schemes and, perhaps, the economy suffered huge losses. Do the Government think there is merit in encouraging the code to have a broader opportunity set of risk-taking among different schemes, especially for those that are open or cannot realistically head to buyout in the nearer term, so that there is a different approach to the long-term strategy?