At the beginning of 2020, the pension industry anticipated a year of development. We have certainly experienced much change, albeit much of it from unanticipated events. We can however learn from our response to these events, and this will inform how we deal with future developments.
We expected change to arise from the usual sources – legislative changes mainly from the EU, and both domestic and international political developments. Anticipated changes included:
• The transposition of the IORP II Directive into Irish law
• The implementation of the European Union Anti-Money Laundering Beneficial Ownership of Trust Regulations 2019 requirement for a beneficial ownership register for pension trusts
• Clarity on the application of the European Union Supplementary Pension Rights (Outgoing Workers) Regulations 2019
• European Central Bank Statistical Data Reporting requirements to the Central Bank of Ireland
• Guidance on, and increased use of, master trusts
• Preparations for the increase in the state pensions age to 67 in January 2021
• Further consultation on, and development of, the structure and system for auto-enrolment pensions for roll-out in 2022
• The impact of a new government with potentially different pensions objectives, following a general election
• The ongoing impact and fallout from Brexit
• Potential market volatility during the US presidential election campaign.
These issues have, and will continue to have, an impact on the future of the industry. This will be covered in more detail later in this blog series.
Keep an eye out for Part 2 of this 3-part blog series coming soon, where we will take a look at the more unexpected developments which have occurred in 2020 and immediate considerations for the pension market.
ITC’s Trustee Services Director
*Please note this content is the view of the author and not of Independent Trustee Company