TPR and FCA publish guidance on LDI

The TPR guidance, published today (24 April), set out practical steps for trustees to manage risks - stressing the importance of good governance, controls to reduce risks, and the ability to react to events quickly, making clear that "trustees are ultimately responsible for how the assets in their scheme are invested". It explained that trustees should only invest in leveraged LDI arrangements which have put in place an appropriately-sized buffer, which must include an operational buffer specific to the arrangement to manage day-to-day changes. The guidance said there should also be a...