Member

I fully recognise that Amendment 218C in the names of the noble Lord, Lord Hendy, and the noble Baroness, Lady Janke, is also motivated by a set of serious and sincerely-held concerns; I do not for a moment question the noble intentions that lie behind it. Of course we do not wish to see pension scheme assets be invested in activities that breach the United Kingdom’s obligations under human rights or international law. However, notwithstanding those aims, I cannot support the amendment as drafted because it would fundamentally step over an important line in the way our pension system is structured. I am concerned that it would introduce a form of direct political direction over pension fund investment decisions, requiring Ministers to regulate how scheme assets were invested by reference to broad and evolving judgments about compliance with international law. That would represent a significant shift away from a trustee-led system grounded in fiduciary responsibility and towards a centralised direction of investment behaviour.