HoL Industry and Regulators Committee: The use of LDI strategies by pension funds
08 Feb 2023
International
1 min read
The Committee has written to HMT and the Pensions Minister with regard to the use of leveraged LDI strategies by DB pension funds. The Committee raises concerns that regulators had not focused sufficiently on the risks and dangers of such strategies and sets out a number of recommendations for the Government. These include bringing investment consultants within the regulatory perimeter as a matter of urgency and conducting a review to consider whether the use of repos and derivatives should be more tightly controlled and supervised in future.
