Government asks Law Commission to look into pension funds and social impact investment
The Law Commission has been asked to provide an accessible account of the law in this area, and to consider the legal or regulatory barriers to social investment.
The Minister for Civil Society, Rob Wilson, has asked the Law Commission to look at social investment by pension funds. In particular, how far the law does or should allow pension funds to select an investment because it would make a positive social impact? The Law Commission has been asked to provide an accessible account of the law in this area, and to consider the legal or regulatory barriers to social investment.
Rob Wilson, Minister for Civil Society said:
"This is an important piece of work by the Law Commission which should contribute to mainstreaming social investment through investment of capital by pension schemes. The right social impact investments can fit the return profile needed by pensions as well as delivering positive outcomes for society."
Social investment delivers intentional social impact alongside a financial return. The Government is keen to see growth in social investment as a way for social enterprises, charities that trade, and businesses with a social mission to access private investment funds. The Law Commission project is just one of a number of ways in which the Government is seeking to support social investment and social enterprises. Read the Government’s 2016 social investment strategy.
The Law Commission has issued a call for evidence, seeking responses by 15 December 2016. This, along with background materials, can be found on its website under “consultations and related documents”.
Their report will be published in May 2017.