Moved by
Lord German
22: After Clause 38, insert the following new Clause—
“Disclosure of information about schemes: duties on trustees and managers
(1) The Pension Schemes Act 1993 is amended as follows.
(2) In section 113 (disclosure of information about schemes to members etc), after subsection (10) insert—
“(11) The trustees or managers of an occupational pension scheme and the managers of a personal pension scheme shall be under a general requirement to account to their beneficiaries for all actions taken in the performance of their investment functions, including (without limitation) actions relating to any of the matters mentioned in subsection (15), and shall also be under a general requirement to act transparently in that regard.
(12) The trustees or managers of an occupational pension scheme and the managers of a personal pension scheme shall comply with any reasonable request for information relating to any of the matters mentioned in subsection (15) where such request is made by or on behalf of one or more of the beneficiaries, or any other persons of a prescribed description which the Secretary of State may specify in regulations under this section, or by a relevant independent governance committee.
(13) The trustees or managers of an occupational pension scheme and the managers of a personal pension scheme shall comply with any reasonable request by or on behalf of any of the persons specified in subsection (12) for information relating to the reasons for the manner in which they have exercised or are proposing to exercise a discretion in relation to any of the matters mentioned in subsection (15).
(14) The trustees or managers of an occupational pension scheme and the managers of a personal pension scheme shall take all reasonable steps to ensure that all persons to whom they have delegated any investment functions mentioned in subsection (15) comply with any reasonable requests by or on behalf of any of the persons specified in subsection (12) for information relating to the performance of such delegated functions.
(15) The matters mentioned in this subsection that are referred to in subsections (11) to (14) are—
(a) the selection, retention and realisation of investments,
(b) the stewardship of investments, including (without limitation)—
(i) the exercise of rights, including voting rights, and
(ii) the engagement with the managers of investee companies and other investee entities in relation to (among other matters) corporate governance (including management remuneration) and corporate actions,
(c) the selection, appointment and monitoring of investment managers and other agents to whom the trustees or managers delegate any of the matters mentioned in paragraphs (a) and (b) above, and
(d) the selection and monitoring of investment funds which are operated by insurance companies or other institutions and in which the trustees or managers have invested or are considering investing.
(16) For the purposes of subsections (11) to (15), a request for information shall be presumed to be reasonable unless—
(a) the requested information has already been supplied to the person making the request within twelve months before the date of the request,
(b) the requested information is otherwise readily and freely available in easily comprehensible form to the person making the request and that person has been advised accordingly,
(c) the trustees or managers (or, where subsection (14) applies, the relevant delegate) reasonably consider that the costs of providing the information would be disproportionate, having regard to (among other matters)—and have stated that to be their view, have explained their reasons, and have given their best estimate of such costs to the person making the request.
(i) in the case of an occupational pension scheme, the best interests of the beneficiaries as a whole,
(ii) in the case of a personal pension scheme, the best interests of the beneficiaries of all personal pension schemes of the same provider as a whole, and
(iii) whether the requested information is relevant to those best interests,
and have stated that to be their view, have explained their reasons, and have given their best estimate of such costs to the person making the request.
(17) Subsection (16)(c) above shall not apply unless where a relevant independent governance committee, having considered such view and reasons—
(a) notifies the trustees or managers that it does not agree that their estimated costs would be disproportionate, or
(b) there are commercial considerations, including (without limitation) confidentiality constraints, that, for so long as such considerations subsist, would make it either unlawful or not in the best interests of the relevant beneficiaries for the requested information to be provided,
and the trustees or managers (or, where subsection (14) applies, the relevant delegate) have stated that to be their view and, so far as practicable, have indicated the nature of the relevant considerations to the person making the request.
(18) Subsection (17) shall not apply to the extent (if any) that it is reasonably practicable for any part of the requested information to be provided, whether in full or in a redacted or summary form, without prejudice to such commercial consideration.
(19) The provision of information under subsections (11) to (15) shall be made without any—
(a) cost or charge to the beneficiary or any other prescribed person making the request, or
(b) restrictions on the use or dissemination of the information by the recipient.
(20) The Secretary of State may make regulations with a view to ensuring that the information disclosed under subsections (11) to (15) is provided in a timely and comprehensible manner.
(21) For the purposes of subsections (11) to (20)—
“beneficiaries” means the persons for whose benefit investments are being, will be or may be applied for the purposes of a pension scheme, whatever the particular form of ownership under which such investments are held for the time being,
“commercial considerations” does not include any contractual provision purporting to exclude or restrict the right of the trustees or managers of a pension scheme to disclose to their beneficiaries the terms of appointment of any person to whom they have delegated any investment functions,
“investments” means investments in relation to which any investment functions are performed,
“relevant independent governance committee” means, in relation to a personal pension scheme that is included in a workplace pensions arrangement, a committee established by the provider of the personal pension scheme to oversee the affairs of the arrangement in the interests of the beneficiaries.””