News Column

Pensions worry

August 6, 2014

Phillip Inman, economics correspondent

Financial risks taken by insurance companies and pension funds will become the next source of anxiety for the Bank of England, according to a senior official.

Andy Haldane, the Bank's chief economist, warned that regulators need to be aware of "risks emerging in the financial shadows". He wrote in Central Banking Journal: "It is likely that regulatory policy would need to be in a constant state of alert."

Haldane, previously one of the Bank's heads of financial stability, said the vast scale of assets built up in investment funds and insurance companies posed a problem as it ebbed and flowed in and out of different asset classes, causing sharp falls and spikes in values. Phillip Inman

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Guardian (UK)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters