Article
What trustees should consider on the one year anniversary of Brexit
Brexit will not result in any significant change to the UK pensions legal framework.
However, the financial volatility caused by the resulting uncertainty has increased scheme investment risk. In addition, falling gilt yields have had a negative impact on scheme funding.
Trustees may also become concerned about the impact of Brexit on the strength of the employer covenant and seek safeguarding strategies around investment and risk management.
Practical next steps for trustees include focusing on integrated risk management as a way of understanding and managing risks and discussing issues with professional advisors. In addition, schemes that use derivatives or swaps should check the terms of those agreements, especially around counterparty rating downgrades / termination triggers and calls on collateral.
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.