Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Aviva warns against forcing UK pension funds to buy domestic assets

by May 16, 2025
May 16, 2025
Aviva warns against forcing UK pension funds to buy domestic assets

Dame Amanda Blanc, chief executive of Aviva, has warned that giving the government power to force pension funds to invest in UK assets would be a serious misstep, describing such a move as “a sledgehammer to crack a nut”.

Speaking on Thursday, Blanc insisted that defined contribution pensions must be invested in the best interests of individual savers, and that any effort to compel schemes to allocate capital to specific UK assets would risk undermining that principle.

Her comments come amid rising tensions between the Treasury and the pensions industry over the Mansion House Accord, a voluntary agreement signed this week by 17 of the UK’s biggest workplace pension providers, including Aviva, Legal & General, Aegon, and Phoenix.

Under the accord, providers committed to allocating at least 10% of their default pension funds to private markets by 2030, with half of that—around £25 billion—going into UK-based assets such as infrastructure, start-ups, and other private investments.

While the Treasury estimates the pledge could generate £50 billion in new investment, it has emerged that a forthcoming review may recommend the government be given powers to mandate asset allocations if providers fail to meet their targets.

Blanc pushed back firmly on the proposal: “Mandation, we do not believe, is the right thing. The government needs to consider the unintended consequences. There is a whole chain of people—employee benefit consultants, employees, workers—who need to change behaviour, not just pension funds.”

“It’s like a sledgehammer to crack a nut. You have to be able to get everybody on board to do the right thing.”

The warning highlights growing unease in the pensions industry that government intervention could conflict with trustees’ fiduciary duties, potentially forcing them to make investment decisions that are not in the best interest of scheme members.

While Chancellor Rachel Reeves has said she does not believe mandation is necessary, she has notably refused to rule it out, telling reporters earlier this week: “I’m never going to say never, but I don’t think it’s necessary.”

That ambiguity has provoked a backlash from several key signatories to the Mansion House Accord, including Royal London, Aon, and Mercer, who argue that pension funds must retain autonomy to invest in a way that best serves savers.

Under the voluntary scheme, pension funds made it clear their commitments are conditional—subject to fiduciary duty and reliant on government and regulatory action to remove barriers to private market investment.

The debate is playing out as the government seeks ways to mobilise long-term domestic capital to drive economic growth and support national priorities. But industry leaders warn that undermining the independence of pension funds could backfire.

Blanc made her comments as Aviva reported strong Q1 trading, with general insurance premiums rising 9% year-on-year to £2.9 billion. The company is currently navigating a £3.7 billion takeover of Direct Line, and the Competition and Markets Authority confirmed it has launched a preliminary inquiry. Blanc said the inquiry was expected and would not delay the deal, which is set to complete mid-year.

As the Treasury prepares to publish its pensions investment review, Blanc’s comments are likely to be influential in shaping the debate—and may increase pressure on the government to steer clear of making investment in UK assets a legal requirement.

Read more:
Aviva warns against forcing UK pension funds to buy domestic assets

0
FacebookTwitterGoogle +Pinterest
previous post
Wireless Logic valued at £3.5bn as founder sells minority stake to General Atlantic
next post
Gold set for steepest weekly drop in six months as trade fears ease and dollar strengthens

You may also like

What does Russia’s bid to legalize crypto mean...

December 29, 2022

London’s black cabs on the brink: why driver...

December 24, 2024

Revolut employees to benefit from £390m windfall as...

August 18, 2024

Starling Bank chief Anne Boden to step down...

May 25, 2023

UK fines 10 carmakers and two trade bodies...

April 1, 2025

Prime Minister Rishi Sunak hopes EU will waive...

May 18, 2023

Starling Bank fined £29m for ‘shockingly lax’ financial...

October 4, 2024

Two-thirds of UK workers with long Covid have...

March 27, 2023

Ofgem raises energy price cap by 80% to...

August 26, 2022

Santander UK Chief Voices Concerns Over Investing in...

March 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,570)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved