UK Government May Force Pension Funds to Invest More in British Assets - FT

Forex - UK Pensions Minister Emma Reynolds left the door open to potentially requiring pension plans to invest more in British assets if reforms fail to direct savings towards domestic infrastructure and companies. The government announced this week that it would create a series of "mega funds" to channel a larger portion of the UK's £1.3 trillion defined contribution and local government pension sector towards productive domestic finance.

Reynolds stated that ministers had not yet taken steps to compel pension funds to invest in British assets, but she indicated that she could revisit the "necessity" of such measures if they do not increase pension investments in the UK. In an interview with the Financial Times, Reynolds said, "For now, we're not discussing it, but let's see where we end up. As you know, pension investments are provided very generously in terms of tax relief."

She also added that the decision to take further actions for increased allocations to the UK would be left to the "second part" of the pension investment review.