Labour is Acting Like Communist China, Says Lloyds Bank Chief
The Chief Executive of Lloyds Bank has compared Labour’s pension plans to policies used by communist China, saying new powers allowing Rachel Reeves to force pension funds to invest in Britain are like the capital controls used by Beijing. The Telegraph has more.
Charlie Nunn told the Financial Times: “Mandating allocations of pension funds is a form of capital control. I have spent 10 years of my working life in China and many jurisdictions where there are capital controls.
“That is a different model and that is a difficult slope for an economy that believes it is an open economy.”
The Chancellor has been pushing for fund managers to put more pension savings into UK ‘private assets’, such as venture capital and infrastructure, to boost investment into Britain and economic growth.
As part of this drive, the Treasury has said it will create a “backstop” power in new pensions legislation that will allow Ms Reeves to force pension funds to invest more in Britain if they fail to do so voluntarily.
Mr Nunn has warned that compelling fund managers to put pensioners’ savings into UK assets would “conflict” with their duty to seek the best returns.
Benoit Hudon, Chief Executive of Mercer UK, one of Britain’s leading pensions advisers, similarly warned in May that mandating fund managers put pensioners’ savings into unlisted UK assets could backfire.
He said at the time: “The ultimate result of a mandate may be lower returns for pensioners and poorer pensioners in the country – which goes completely against the fundamental objective of this proposal.”
Amanda Blanc, the boss of Aviva, has also raised concerns about the proposals. She said in May: “We think the red line is mandation. We do not believe that is a necessary strategy.”
Mr Nunn said Lloyds, Britain’s biggest retail bank, already had around £35 billion invested in UK assets.
Worth reading in full.
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Make it worth their while then… and for God’s sake don’t ask them to invest in HS-effing-2!
The background is UK governments have forced insurers and pension funds to put far more into UK government debt than was good for them.
Now they want much of the rest of the insurers’ and pension funds to fund the green agenda and housing they can’t fund through either tax or borrowing. If they succeed the losses will be huge.
“If they succeed the losses will be huge.’
Yes, that is the general idea.
Tbh, nobody in their right mind would invest in basketcaseville arizona (formerly known as england) nowadays.
Latest in the series of Reality Reeves:
Episode 15, Bitten (Again)
Just you wait. When Reeves really panics. we’ll probably have exchange controls limiting how much we can take when we go on holiday to just a few hundred quid per person.
You won’t be going on holidays.
Holiday destination: the salt mines.
The intention is to destroy this country at every level and the pensioner class is one very neat cohort. By and large pensioners do not have the means, ability or will to seek to replace lost income or capital and so when this government has robbed them blind that’s the end of the matter and they can just like it or lump it, otherwise known as STFU. That clearly eliminates the older end of society as effective economic participants, the youth have already largely been marginalised so Kneel and co can work on those left in the middle and with businesses and industries shutting left, right and middle these can soon be brought to heel.
Our destruction is coming along nicely.
The quicker the downfall, the sooner the recovery, for those that survive.
Spot on, or it’s acting like Soviet Russia. Jailing people for words and not complying with government diktat.