Increasing the standards of investment expertise and trustee skills will also enable pension funds to create diversified investment strategies, as well as expanding the range of investment vehicles to ensure a sufficient range of opportunities for pension scheme investment in high-growth UK companies.
The letter also said that prioritising a system that ensures long-term value of pension schemes over short term cost, would help with this.
“This is a long-term agenda and will need all parts of the pensions delivery and regulatory system to operate in alignment with this vision,” the letter said.
“We recognise the significant work both regulators are already undertaking in this space to drive forward such initiatives as VFM, decumulation, ensuring effective trusteeship, new guidance to trustees and advisers about investing in private markets and the cooperative approach that has been evident in doing so.
“The future decisions we take will be informed by the vision we set out here.”
sonia.rach@ft.com
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