Bank of England warns against ‘mandation’ of pension investment strategy | News
Bank of England (BoE) governor Andrew Bailey has openly opposed the UK government’s proposed “back‑stop” power to mandate pension scheme investments into UK assets, warning that while reforms are needed, they should come through market mechanisms, not ministerial decree.
Speaking this morning at the BoE’s Financial Stability Report Press Conference, Bailey acknowledged that “we’ve had a low level of pension fund investment in the economy” and that the industry’s structural challenges, including fragmentation and weak engagement with real‑economy assets, “require a lot of heavy lifting”.
However, he was unequivocal on mandation: “I do not support mandating, I don’t think that’s appropriate […] I hope…
