MPs to inquire into pensions strategy behind UK market sell-off
MPs are to probe the pensions regulator over its role in supervising thousands of pension plans that were this week left teetering on the edge of default following unprecedented market turmoil.
The work and pensions committee said on Sunday that it intended to write to The Pensions Regulator, which supervises about 5,200 corporate defined benefit plans that deliver a secure income to around 10mn members.
Thousands of pension plans that had used derivatives contracts to mitigate the impact of movements in bond prices on their liabilities faced emergency cash calls this week as gilt prices fell in an unprecedented sell-off triggered by chancellor Kwasi Kwarteng’s “mini” Budget.
This story originally appeared on: Financial Times - Author:Josephine Cumbo
