Pension fund clearing exemption – PLSA response to HMT call for evidence

Earlier this year, the Government extended the temporary pension fund clearing exemption to 18 June 2025. At the time, HM Treasury committed to conducting a full review into the long-term approach. This call for evidence begins that review and, in our response, we have outlined a number of our key considerations: 

1. The PLSA supports the clearing process and acknowledge its benefits. 
2. The PLSA recognises that clearing is challenging for many of our members and therefore, our position is to advocate for a permanent pension fund clearing exemption.
3. Despite holding up during last September’s LDI crisis, we still have concerns about the capacity of the gilt repo market.
4. We have significant concerns that the removal of the clearing exemption would be in direct contradiction to Government policy announced via the Mansion House reforms and the UK Pensions and Growth agenda. It is vital that these issues are not considered in isolation.