Pensions Bill

Amendments Nos. 122A and 122B stand in my name. The references to supporting best practice in terms of shareholder activism and the best interests of members are in line with Principle 6 of the Myners report, Institutional Investment in the United Kingdom: A Review, which was published by the Treasury in 2001. This report sought to provide some basic principles of an effective approach to investment decision-making, in order to promote the long-term health of investments. Support for such best practice is also found inthe Institutional Shareholders’ Committee statement of principles, The Responsibilities of Institutional Shareholders and Agents. This sets out best practice for institutional shareholders and agents with regard to their responsibilities in respect of investee companies. Members of the ISC include the Association of British Insurers, the Association of Investment Trust Companies, the National Association of Pension Funds and the Investment Management Association. Amendment No. 122B aims to ensure that there are some socially responsible ethical funds as options. The wording is based on that of the Pensions Act investment regulations.