Last week The Pensions Regulator published their guidance for consolidators like Clara. You can find it here. The Pensions Minister and the Chief Executive of The Pensions Regulator also offered their thoughts.
As we said in our response, the announcement puts Clara firmly on the path to completing our regulatory assessment and executing our first transactions.
The Pensions Regulator’s announcement was widely welcomed across the pensions industry. Employers, trustees, their advisors and those representing them all published supportive analysis and comment.
Among the whole range of informative and interesting articles, we found these particularly useful:
– Edward Brown from Hogan Lovells offered a more reflective review.
– Stewart Hastie from Isio asked one of the key questions about consolidation: “The decision to substitute employer covenant for the security of a Superfund can be a daunting prospect for Trustees. In determining whether it’s worthwhile to consider, we recommend asking yourself: would you agree to the reverse transaction? Would you give up a better funded, lower risk position with a known financial covenant for a worse funded, higher risk position with the potentially unlimited but uncertain and difficult to measure covenant of your existing sponsor?”