BOE Sees Risks From Asset Allocations of Pension Funds, Insurers

The investment decisions of U.K. pension funds and life insurers pose potential risks to financial stability and economic growth, according to a Bank of England study.

The London-based central bank assessed the broader impact of asset-allocation choices as part of its its remit to safeguard financial stability, something it’s already tackling with its use of macroprudential tools for the banking industry. Governor Mark Carney said in May insurers must be accountable in the same way as banks, both for the risks they pose to the economy and their potential to provide long-term finance.