Pension funds advised to assess impact of Libor manipulation

July, 2012 Print

Pension funds advised to assess impact of Libor manipulation
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Pension funds should ask their fund managers if their assets have been affected by the recent scandal involving Barclays in the manipulation of Libor, according to the National Association of Pension Funds (NAPF).

NAPF head of corporate governance, David Paterson, said: “The impact of Libor manipulation on pension funds is hard to pin down, and could have happened through a range of financial instruments. Pension fund trustees should ask their fund managers to tell them if and how their assets have been affected.”

Paterson added: “This issue raises doubts about previous remuneration which need to be answered. Barclays should use its clawback rules to penalise those involved by recovering bonuses and pay. Institutional investors like pension funds should be concerned about whether the commitment to improved risk controls has any real meaning. Shareholders should also ask why the board was apparently unable to carry out its oversight duties effectively.”

Pension funds should ask their fund
managers if their assets have been
affected by the recent scandal
involving Barclays in the
manipulation of Libor, according to
the National Association of Pension
Funds (NAPF).
NAPF head of corporate governance,
David Paterson, said: “The impact of
Libor manipulation on pension funds
is hard to pin down, and could have
happened through a range of financial
instruments. Pension fund trustees
should ask their fund managers to tell
them if and how their assets have been
affected.”
Paterson added: “This issue raises
doubts about previous remuneration
which need to be answered. Barclays
should use its clawback rules to
penalise those involved by recovering
bonuses and pay. Institutional
investors like pension funds should be
concerned about whether the
commitment to improved risk controls
has any real meaning. Shareholders
should also ask why the board was
apparently unable to carry out its
oversight duties effectively.”

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