Fiduciary trustees given go-ahead to make 'ethical decisions' on pensions

摘要

Council pension trustees can make investment decisions based on non-financial factors such as ethics as long as there is 'no risk of significant financial detriment', a new report from the advisory Law Commission has said. The report concluded that trustees should take into account ethical, environmental, social or governance issues where they were 'financially material'. It also concluded that while the 'pursuit of a financial return should be the predominant concern' of pension trustees the law was 'sufficiently flexible to allow other, subordinate concerns to be taken into account'.