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By the London-based partners of global law firm Goodwin.

The Pension Schemes Bill announced in the King's Speech on 17 July builds on the UK Government's drive to encourage defined contribution (DC) pension investment in long-term illiquid investments such as private equity, venture capital, infrastructure and real estate, and accelerate interest in the Long Term Asset Fund (LTAF).

As we have noted before, the LTAF is a UK-authorised, open-ended alternative investment fund whose target market includes DC pension schemes; it has been available since November 2021 albeit with a relatively low take-up in the market to date.

The Pension Schemes Bill will advance several measures already in train set out in the previous government's Mansion House agenda. The specific measures that relate to those seeking to facilitate pension fund investment are threefold, as set out below.

- First, to provide for the consolidation of DC deferred small pension pots. The intention is to make it easier for individuals to keep their pension schemes in one place after changing employers, likely leading to a greater consolidation of asset pools. We expect this will make it easier for DC schemes to manage liquidity and fee complexities that arise from investing in private funds.

- Second, to introduce a standardised value for money (VfM) framework for trust-based DC schemes; the FCA will ensure it is applied consistently across the pensions market (i.e.......................

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