Mr Miliband is proposing a sweeping new legal duty on any financial service which manages savings, including pension funds and banks, to maximise the saver’s returns. Failure to do so would mean them breaking the law.
That’s entirely the end of the corporate social responsibility movement then. Entirely screws over the ethical pension and investment funds. All those plans for Green Bonds go up in smoke.
For he’s imposing a strict version of fiduciary duty on the pension funds. You are not allowed to consider anything else at all except the financial return to investors. If fags n’booze provide the best returns, arms, raping Gaia through mining, then that’s where you’ve got to invest.
Bugger what anyone thinks about anything else: financial return is the only valid metric.
It’s going to be very interesting indeed seeing what happens when people, including the Milipede, realise what’s he’s actually advocating.