In November 2016, the government asked the Law Commission to look at how far pension funds may or should consider issues of social impact when making investment decisions.
The Law Commissions report found there are no substantive regulatory barriers to making social impact investment by pension funds. Most of the barriers are in fact structural and behavioural, including the need for clearer legislation and guidance.
This is the governments final response to the report. It includes plans to clarify the requirements for trustees of occupational pensions and the independent governance committees of workplace personal pensions around:
We published a consultation on the draft Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2018 with this final response.
Read the Law Commission report Pension funds and social investment.
We published the governments interim response in December 2017.