Device is incompatible to play the video
Wednesday, 21 March 2007, 12:00AM

Redesigning financial regulation of pensions and other retail products

Professor Avinash Persaud

Worried about your pension? Worried about the nation's poor savings habits or failing pension funds? In his next Gresham Lecture on Wednesday 21 March at 6pm, Professor Avinash Persaud will consider pensions and propose 'Redesigning Financial Regulation' to better suit pensioners, savers and investors.

One of the reasons why people feel more insecure today, despite generally rising incomes and near full employment, is that the idea of long employment with a single employer, followed by a decent pension, has been lost to the past. Employment and pensions have become portable and disconnected. Picking the right retirement, pension and savings arrangements have become critical decisions.

In this new world the appropriate regulation of pensions is important. However, it is Persaud's contention that the regulation has been misguided and has led to individuals bearing more risks in mechanisms that encourage the wrong management of risks.

Today, regulation is leading companies to push employees off old-fashioned defined benefit pension plans that clearly defined the retirement benefit they would receive, on to defined contribution plans which merely define how much money they put in every year.

In a defined contribution pension scheme, a 60 year old teacher looking to his or her 'low risk, tracker fund' could end up with an income for the rest of their life that is 20% higher or lower than expected just a year previously. Today a young pension scheme investing in a host of investments that give a superior return if held for a long time can be forced out early, with return penalties, by rules on how pension funds value their assets on a daily basis.

In this Gresham Lecture, Persaud considers where we have reached in pension fund arrangements and regulation today, and proposes where we should be instead.

professor-avinash-persaud

Avinash Persaud is the founder and Chairman of Intelligence Capital. Prior to founding Intelligence Capital and the GAM Persaud Investment Funds, he was Head of Global Research at State Street Corporation. Previously, he was Global Head of Currency and Commodity Research at JP Morgan. He held the Mercers' Memorial Chair in Commerce at Gresham College between 2002 and 2005, is a Governor of the London School of Economics and a Trustee, a member of the Board of the Global Association of Risk Professionals and the Chair of the CBC Working Group on investment flows. He is the winner of the Institute of International Finance's Jacques de Larosiere Award in Global Finance and an Amex Bank Award as well as a prolific author.

All of Professor Persaud's previous lectures may be accessed here.

Read More
Read Less

Transcript

21 March 2007

Redesigning financial regulation of pensions and other retail products
Professor Avinash Persaud

View PDF
Print
Related Past Lectures
WATCHED

Leadership Lessons From Lockdown

Professor Alex Edmans
Wednesday, 24 June 2020 - 6:00PM
WATCHED
Part of a series

The Growth Mindset and the Abundance Mentality

Professor Alex Edmans
Wednesday, 3 June 2020 - 6:00PM
WATCHED
Part of a series

The Cashless Society

Professor Richard Harvey
Tuesday, 26 May 2020 - 6:00PM
WATCHED
Part of a series

Critical Thinking

Professor Alex Edmans
Wednesday, 22 April 2020 - 6:00PM
WATCHED

How Great Companies Deliver Both Purpose and Profit

Professor Alex Edmans
Monday, 30 March 2020 - 6:00PM
WATCHED
Part of a series

Mental and Physical Wellness

Professor Alex Edmans
Wednesday, 4 March 2020 - 6:00PM
WATCHED

How well-meaning legal and accounting principles caused the last financial crisis and how to avoid them causing the next

Professor Avinash Persaud
Monday, 24 November 2008 - 12:00AM
WATCHED

A simple solution to global imbalance that is easy to implement and is unlikely to make matters worse

Professor Avinash Persaud
Wednesday, 6 December 2006 - 12:00AM
WATCHED

Will the US easily relinquish economic and political power to China and India in the 21st century?

Professor Avinash Persaud
Thursday, 5 October 2006 - 12:00AM
WATCHED

Regulatory capture

Professor Avinash Persaud
Tuesday, 28 June 2005 - 12:00AM
WATCHED

Micro-credit

Professor Avinash Persaud
Thursday, 12 May 2005 - 12:00AM
WATCHED

Public services, private finance: good or bad?

Professor Avinash Persaud
Thursday, 3 March 2005 - 12:00AM
WATCHED

How To Catch A Monkey

Professor Alex Edmans
Thursday, 28 November 2019 - 10:00AM
WATCHED

CEO Pay vs Performance

Professor Alex Edmans
Thursday, 6 December 2018 - 10:00AM
WATCHED

Profit or Purpose?

Professor Alex Edmans
Friday, 21 September 2018 - 10:00AM
WATCHED

Problems Causing Lack of Productivity and Comparing to Other Countires

Professor Jagjit Chadha
Thursday, 24 November 2016 - 1:59PM
WATCHED

Do You Think The UK's Weak Trade Unions Is Related To Low Productivity?

Professor Jagjit Chadha
Thursday, 24 November 2016 - 1:58PM
WATCHED

Does Technology Have An Influence On The Way Labour Models Work?

Professor Jagjit Chadha
Thursday, 24 November 2016 - 1:55PM