Member

156: After Clause 117, insert the following new Clause— “Investment principles and choosing investments: guidanceIn Part 1 of the Pensions Act 1995 (occupational pensions), after section 36 insert—“36ZA Investment principles and choosing investments: guidance(1) The Secretary of State must issue guidance explaining such aspects of the law contained in regulations made under section 35(4) (statement of investment principles) and section 36(1) (choosing investments) as the Secretary of State considers appropriate.(2) Guidance issued under this section may, in particular—(a) explain the meaning of any expression relevant to that law; (b) include examples to illustrate how that law applies to particular scenarios.(3) The trustees of a trust scheme, and any fund manager to whom any discretion has been delegated under section 34 (power of investment and delegation), must have regard to guidance issued under this section.(4) The Secretary of State—(a) must from time to time review any guidance issued under this section; (b) may from time to time revise and re-issue guidance under this section.(5) Before issuing guidance under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate.(6) The requirement to consult those persons may be satisfied by consultation carried out before this section comes into force.(7) The Secretary of State must—(a) lay guidance issued under this section before Parliament, and(b) publish such guidance in such manner as the Secretary of State considers appropriate.(8) The first guidance issued under this section must be laid before Parliament, and published, before the end of the period of 12 months beginning with the day on which this section comes into force.””Member’s explanatory statement This amendment would require the Secretary of State to issue guidance explaining aspects of the law contained in certain pensions regulations. The guidance may in particular explain the meaning of expressions in those regulations, such as “financially material considerations” (including “environmental, social and governance considerations”) and “best interests of members”.