Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of (1) the potential use of UK-listed closed-ended investment companies in order to fulfil the Mansion House pension fund commitments, and (2) the risks to pension scheme members of using open-ended long-term asset funds to hold illiquid long-term assets.

The Mansion House Accord is an industry-led agreement and information about the assets in scope is available on the websites of Pensions UK (formerly the PLSA) and the Association of British Insurers (ABI).

The Long-Term Asset Fund (LTAF) was introduced by the Financial Conduct Authority (FCA). The structure was designed to fulfil the need for investment products that can provide funding for long-term projects, such as venture capital, private equity and debt, real estate and infrastructure while offering investors the potential for higher returns in exchange for limited liquidity.

Pension schemes are subject to liquidity requirements as set out in law and in Financial Conduct Authority (FCA) rules and are subject to the oversight of the FCA and The Pensions Regulator (TPR).