Pensions: what's new this week - January 20, 2025

Government confirms continuation of clearing exemption

Pension schemes are currently exempt from clearing requirements for over-the-counter derivatives under UK EMIR. This exemption lasts until June 18, 2025 (note: this relates to the UK clearing exemption only; the similar EU exemption for European pension scheme arrangements has already ended).

Following a call for evidence, the government has now confirmed that it will take forward secondary legislation to ensure that the exemption does not expire as currently scheduled, and to remove any further time limit on the exemption. Responses to the call for evidence suggested that mandatory clearing would require pension schemes and asset managers to increase their cash holdings, reducing the ability to invest in illiquid assets, and that removing the exemption could make market stress events worse by increasing liquidity pressures.

Read the response on the pension fund clearing exemption.

Save the date: pensions academy online, March 11 and 13, 2025

Our next Pensions Academy Online webinars will take place on Tuesday March, 11 and Thursday March 13, 2025. Each webinar begins at 9.30am and will last approximately one hour. Invitations will follow shortly for:

• Cyber risks and mitigations in the pensions world – Tuesday March 11: members of our specialist cyber team will share insights on mitigating the risks (and, in the worst case scenario, dealing with the aftermath) of cyber breaches. How can pension scheme trustees be better equipped to deal with this pervasive and ever-evolving threat?
• Legal update – Thursday March 13: we’ll round up all the latest developments and outline what’s on the pensions horizon.