Member

The Government’s view is that, although we understand its drive, this amendment risks moving us away from the proportionate, risk-based approach that underpins UK pensions regulation and towards a more prescriptive statutory model. The provisions on terminating investments could unintentionally limit trustees’ ability to use engagement as a long-term lever for change. In some contexts, particularly modern slavery, automatic divestment could actually worsen poverty or displacement, increasing risk rather than reducing it.