Called to account



The new accounting standard FRS17 that has been vexing the UK pension fund industry, predominantly because of the volatility it brings to firms’ balance sheets, is being touted as a driver towards increased pension fund investment in bonds. Furthermore, investment banks argue that the standard will encourage funds to extend their investment beyond gilts to all parts of the credit spectrum. For its part, the pensions industry appears less certain.

There seems on the surface at least to b