Labour’s pension plans remind me of communist China, says Lloyds chief
Lloyds chief slams detail in Labour’s pension plan
- Charlie Nunn, chief executive of Lloyds Banking Group, has warned the government against plans to force pension funds to invest in British assets.
- Nunn likened the proposed mandating of allocations of pension funds to a “form of capital control” seen in communist China, suggesting it could conflict with the funds' duty to seek the best returns for pensioners.
- Labour's pension reform includes creating megafunds, with anticipated legislation potentially granting the Treasury power to set binding asset allocation targets for UK investments.
- Concerns have been raised that government-imposed allocation targets could prevent pension funds from complying with their legal obligation to provide optimal returns.
- Conversely, Louis Taylor, CEO of the British Business Bank, encouraged pension funds to recognise the 'goldmine of opportunity' in UK private firms, implying mandates would be unnecessary if these opportunities were fully appreciated.