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UK pensions bodies warn against mandating UK asset allocations under Mansion House Accord; cite unintended consequences, asset bubble and compliance risks, and call for incentives and more domestic assets

Published on: 16 May 2025

Published by a Law360 reporter
Legal News
Article summary

Industry representatives told the parliamentary Work and Pensions Committee that imposing compulsory quotas for UK private market assets on pension funds could lead to unintended consequences. They were commenting on the Mansion House Accord, under which 17 pension providers agreed with HM Treasury on 13 May 2025 to assign 10% of portfolios to infrastructure and clean energy by 2030. Around 5% of that allocation will be directed to UK holdings. The government expects this to deliver an additional £25bn in domestic investment over the period clearly set out in the agreement...

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