Trade body calls for pension accounting overhaul

A pension trade body will call for an overhaul of the underlying accounting framework for pensions, which it believes can be held hostage to market swings, the Financial Times reports.

Lindsey Tomlinson, chairman of the National Association of Pension Funds, said there is little point valuing pension assets at market prices which may be subject to “panic selling”.

On Thursday he will call for the creation of a high-level panel of plan sponsors, accounting standards setters and investors to look at reforming current rules.

“What we are saying is that the current framework isn’t satisfactory,” Mr Tomlinson said

“What I say is that we all know the efficient market hypothesis is a flawed hypothesis and it is being talked about in the banking world, too.”

Read the full story: NAPF to call for overhaul of rules