Davy Select Executive Pension IORP restrictions

[Savvy]

Comms from Davy providing a very limited range on investment instruments that can be purchased after 1st August

Vanguard Index Funds
Vanguard Global Stock Index
Vanguard U.S. 500 Stock Index Fund
Vanguard European Stock Index Fund
Vanguard Japan Stock Index Fund
Vanguard Emerging Markets Stock Index Fund
Vanguard Global Bond Index Fund hedged
Vanguard Global Short-Term Bond Index hedged
Vanguard Global Small Cap Stock Index
Vanguard ESG Developed World All Cap Equity Index

iShares UCITS Exchange Traded Funds (ETFs)
iShares MSCI ACWI UCITS ETF
iShares Global High Yield Corp Bond UCITS ETF EUR
iShares Euro Corporate Bond 1-5yr UCITS ETF EUR

Dimensional World Allocation Range
World Equity
World Allocation 20/80
World Allocation 40/60
World Allocation 60/40
World Allocation 80/20

Davy Fund of Fund Range
Cautious GPS
Moderate Growth GPS
Long Term Growth GPS
Cautious SRI GPS
Moderate Growth SRI GPS
Long Term Growth SRI GPS
Global Equity Foundation Fund
Factor Equity Foundation Fund
Fixed Income Foundation Fund
Target Return Foundation Fund

Absolute Return
Ruffer Total Return International Fund

Doesn't look like individual shares will be allowed?

 

[Savvy]

Davy Select EPP Letter:

The purpose of this letter is to let you know what these new investment rules are and what changes Davy is making
to ensure your EPP investments comply with the legislation. The new rules can be summarised as follows:
• Investments must be made in the member’s best financial interest, i.e. invest as a prudent person would
• Portfolio must be properly diversified.
• Investments must take into account security, quality and liquidity of the portfolio as a whole.
• Invest predominantly in regulated markets
• Investments should take into account ESG factors.
• There must be a clearly stated investment policy with risk and return objectives.

EPPs established before 22nd April 2021 are provided with an open-ended derogation from the investment rules
above in respect of investments made before 22 April 2021 which means any assets acquired before this date
can be retained.
Any new investments made on or after 22nd April 2021 must be in line with the new rules

 

[LDFerguson]

If you're not seeking to put in ongoing contributions greater than the age-related limits for tax relief you could wind up the EPP, transfer the fund into a Buy-Out Bond and continue contributions via a PRSA. Neither Buy-Out Bonds nor PRSAs are affected by the new IORPS regulations.

 

[Dunelm]

Can new executive pensions plans be started with Davy after August 1st or is this only for existing customers?

 

[Savvy]

They are still advertised them on their website so it looks like it, but your investment options may be limited.

 

[Zarathustra]

Are Davy Select the only revenue approved EPP investments provider?
If there are others, what are they doing?

 

[LDFerguson]

Are Davy Select the only revenue approved EPP investments provider?
If there are, what are they doing?

No, Davy are one of many providers of Executive Pension Schemes in Ireland. I haven't done business with them for a long time so I don't know what they're doing regarding the new regulations. You'd have to ask them.