Finally Here: The DB Funding And Investment Strategy Regulations - Key Points And Actions

Key action points from the DB Funding and Investment Strategy Regulations (the Regulations)

Closer scrutiny of employer covenant and future reliability on it

• Trustees - Further employer covenant analysis will be required by trustees (whether this is via a third party covenant advisor or provided by the sponsor). It will be vital to take into account the legal covenant as well as the financial covenant, e.g. strength of guarantees, the ability to enforce overseas and the legal structures of groups.
• Trustee and sponsor - A greater volume of financial information and legal documentation is likely to be required by trustees from employers. Now is a good time for trustees to revisit information sharing protocols with their sponsors, to ensure they are fit for purpose in light of the Regulations and if there are none, seek to put in place as soon as possible.