Northern Rock Nationalised: Trustee Problem
Published / Last Updated on 23/04/2008
Northern Rock Nationalised: Trustee Problem
Northern Rock’s nationalisation could cause a problem for trustees because the fund’s 93 per cent allocation in gilts is classified as self-investment, which under normal circumstances would be illegal.
If nationalisation is a temporary measure, as has been suggested, the government may have to pay compensation to trustees to go through the clearance process with the Pensions Regulator.
Our view
Whilst a technicality, we are sure that the Pensions Regulator will allow this.
Useful links:
Learn more about Pension Investment Rules and related topics in the Pensions Adviser Channel
Request expert financial advice now
Purchase guidance on financial planning in the Money Shop
