Emma Reynolds, UK pensions minister, has left the door open to forcing pension schemes to invest more in British assets if reforms fail to drive savings into domestic infrastructure and companies.
The government announced last week it would create a series of “megafunds” to steer more of the UK’s £1.3tn defined contribution and local authority pension industry into productive domestic finance.
Reynolds said that while ministers had not taken steps to force pension funds to invest in British assets, it could reconsider “mandation” if the measures did not boost pension investment in the UK.
“We’re not talking about it for now, but let’s see where we get to,” Reynolds said, in an interview with the Financial Times. “Investment in pensions is, as you know, very generously provided for in terms of tax relief.”
Reynolds added that a decision to take further measures to push a higher allocation to the UK would…
