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Coming full circle: Closing Loopholes No 2 reinstates the common law tests
On 7 December 2023, Parliament passed the Fair Work Legislation Amendment (Closing Loopholes Act 2023),
United Kingdom | Publication | February 2024
On February 7, 2024, the Work and Pensions Committee of the House of Commons published a lengthy report submitted by the Regulator on the impact DB schemes of the liability-driven investment (LDI) crisis in autumn 2022. The Committee published a report about the episode in June 2023 and asked the Regulator to produce a detailed account of the impact.
The Regulator’s report concludes that, while the situation in late September and early October 2022 bought into focus the extent of DB schemes' investments in leveraged LDI, the movement in gilt values and yields over 2022 actually led to a significant improvement in scheme funding, as liabilities fell by more than asset values.
However, the precise impact for individual schemes will not be known until completion of the next triennial valuation process. Some individual schemes may have experienced funding deteriorations during September 2022 on account of high levels of hedging, the cost of losing and re-acquiring hedging or following discounted selling of assets to meet collateral requirements. While the report models these impacts, the Regulator has no data on the extent and scope of discounted sales for specific schemes.
Since the LDI episode, the Regulator says it has improved its monitoring of such products, and it now receives weekly data from the five UK fund managers that hold almost 90 per cent of the DB market in leveraged LDI assets.
The Regulator's ongoing work includes:
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On 7 December 2023, Parliament passed the Fair Work Legislation Amendment (Closing Loopholes Act 2023),
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Starting in 2022, the Government of Canada has introduced three waves of amendments to the Competition Act (Act) resulting in the most significant revisions to Canada’s competition laws in over a decade.
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Prime Minister Rishi Sunak has unveiled the Conservative Party’s manifesto ahead of the general election taking place on 4 July 2024. Whilst the Conservative Party manifesto does not contain changes to employment laws which are as significant as those proposed by the Labour Party, it includes a number of policies which will impact rights and obligations in the workplace. Below is a brief summary of these proposals and the implications for employers.
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