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04 Sep 2018

Five good reasons to get your investment management agreement reviewed

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To get the most from your investments, and to make sure you are protected when things go wrong, you should get your key investment documentation such as your investment management agreement (IMA) reviewed. Five good reasons to get your IMA reviewed are set out below.
 

  1. Make sure you don't breach the law 
      
    Pensions legislation puts particular requirements on an IMA from the method of appointment to borrowing limits. Make sure your IMA is legally compliant.

  2. Limit trustee exposure to the assets of the trust
     
    Trustees will not want to be on the hook for more than can be recovered from the assets of the trust – and ideally liability will be limited to a much lower amount.

  3. Understand whether scheme assets will be lent
      
    Do your fund managers lend out scheme assets and are you aware of the risks of them doing so? The Regulator expects trustees to be aware of any 'securities lending' before investing.

  4. Getting the best terms
      
    Adding a 'most-favoured nation' clause to your IMA can provide the pension scheme with the best terms offered to any investor in the fund.
     
  5. Peace of mind
      
    Ensuring your IMA and key fund documentation have been reviewed by the Stephenson Harwood Pensions Investment Team will give you peace of mind regarding your investments and the security of your scheme assets.
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Mark Catchpole

Mark Catchpole
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