For the NEST scheme the primary areas where the potential for conflicts to arise are:
Voting and engaging on matters affecting one of our corporate clients or prospective clients using or planning to use NEST to fulfil their automatic enrolment duties
Engaging with UK Government and regulatory bodies on issues relating to the activities and regulation of UK businesses, and our role as an NDPB with financial backing from the UK Government.
Investment in Government securities, such as gilts or infrastructure projects.
In order to manage conflicts NEST has a clearly articulated statement of how it will act as an institutional investor in the form of NEST’s voting and engagement policy. This policy is reviewed every three years, and approval for any changes is strictly the responsibility of NEST’s Investment Committee. Decisions about voting and engagement activity are agreed within the Investment Team. Influence on these activities from other areas of NEST is not permitted – in particular there is no oversight or input from those parts of NEST with responsibility for client relationships and client acquisition.
The voting and engagement policy and our voting records are published on NEST’s website each quarter.