The UK Financial Reporting Council (FRC) revised Actuarial Standard Technical Memorandum 1 (AS TM1).
The revisions, according to a news release, incorporate “higher accumulation rate assumptions in response to higher long-term interest rates and gilt yields”, resulting in higher long-term expected returns.
The FRC annually reviews the appropriateness of the assumptions set out in AS TM1 to ensure they remain fit for purpose, the release said. FRC Executive Director of Regulatory Standards Mark Babington said in the release that the revisions will allow pension scheme members to have more confidence in the consistency and reliability of their pension illustrations.
The revised standard aims to help users better understand their retirement savings, the release said, and will be effective from 6 April.
New directive aims to tackle greenwashing in European companies
The EU Parliament’s Internal Market and Environment committees recently adopted their position on how companies can validate environmental marketing claims.
The so-called green claims directive complements the already approved ban imposed by the EU on greenwashing.
“[The directive] defines what kind of information companies have to provide to justify their environmental marketing claims in the future,” a news release said. “It also creates a framework and deadlines for checking evidence and approving claims and specifies what happens to companies who break the law.”
The new rules mean companies should submit any future environmental marketing claims for approval before using them, the release said. Companies that break the rules may be excluded from procurements, lose their revenues, and face a fine of at least 4% of their annual turnover.
The draft report was adopted with 85 votes to 2 and 14 abstentions, the release said. The proposed directive will be put to a vote at an upcoming plenary session, expected in March, and will constitute Parliament’s position at first reading.
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