BBG: Hunt To Announce Pension Fund Reforms In Autumn Statement

Bloomberg has reported that UK Chancellor Jeremy Hunt will announce reforms in next week's autumn statement which will allow British companies, "to release billions of pounds from pension funds for investment."

• According to BBG, "The Pension Protection Fund, will also be given new powers to consolidate small retirement plans," in order to enable "transformational investments in the UK."
• With little fiscal space available for Hunt, the report suggests that the Chancellor intends to promote growth through private sector investment.
• BBG notes that, "Defined-benefit plans — which have £1.2 trillion under management, more than double the defined contribution sector — have been identified as another potential source of funds..."
• Sources told BBG that, "although the decision will be announced next week, the government would launch a further consultation to determine the level of protective buffer, the tax rate, and the PPF premium..."