Nest has confirmed its new subsidiary, Nest Invest has received authorisation as an Occupational Pension Scheme.
Nest’s chief investment officer Mark Fawcett says: “The Financial Conduct Authority has reviewed our application and authorised Nest Invest.
“Nest is going to be responsible for more than £400 million new contributions every month. We’re becoming one of the largest players in the UK pension’s market and our investment strategy is evolving to reflect that.”
Having an FCA regulated subsidiary will help Nest implement more sophisticated ways of investing on behalf of its members. These additional investment activities include:
· Providing regulated advice to Nest’s Board on new investment opportunities
· Enabling Nest to make active decisions on co-investment opportunities in private markets in due course
· Directing fund managers to use derivatives in order to help invest Nest’s cashflows and manage risk efficiently
Fawcett described the process of setting up Nest Invest as “the natural next step” for a scheme its size. He says that this authorisation confirms the company has “the right people and structures in place. Fawcett adds: “We already have the internal expertise in Nest’s investment team to manage the additional responsibilities.”