Pension funds advised to assess impact of Libor manipulation

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.”