M&S Chair Archie Norman Blames Pension Funds For London Stock Market Decline

London, UK – Marks & Spencer chair Archie Norman has attributed the decline of London’s stock market to pension funds. He argues that recent accounting changes have forced pension schemes to shift their investments from equities to bonds, thus reducing the capital available for UK stocks.

Shift in Investment Strategies 

Pension funds have traditionally played a crucial role in the stock market by investing heavily in equities. However, new accounting regulations have prompted these funds to favor bonds, perceived as safer and more stable investments. This shift has led to a decrease in demand for UK stocks, contributing to the market's decline.

Accounting Changes and Their Effects 

The new accounting standards require pension funds to adopt a more risk-averse strategy, prioritizing bonds over stocks. This has resulted in a significant reallocation of assets, with a notable impact on the liquidity and performance of UK equities. The reduced presence of pension funds in the stock market has led to lower investment volumes and diminished market dynamism.

Norman’s Viewpoint

Archie Norman has been outspoken about the adverse effects of these changes. "The move towards bonds has drained the stock market of vital capital, weakening its overall strength," he remarked in a recent statement. Norman advocates for a re-evaluation of these accounting standards to allow for a more balanced investment approach that supports the stock market.

Economic Consequences

The decline in the stock market has far-reaching economic implications. Reduced investment in equities can limit business growth opportunities, dampen economic expansion, and undermine investor confidence. Additionally, it may affect London's reputation as a leading financial center.

Suggested Reforms 

Norman suggests that revising the accounting rules could help redirect investment back into the stock market. By providing more flexibility to pension funds in their investment choices, a portion of the capital currently allocated to bonds could be redirected towards equities, potentially revitalizing the market.


Archie Norman's critique underscores the complex interplay between regulatory policies and market performance. Addressing the concerns he has raised could be essential in restoring the vibrancy of the London stock market and ensuring a healthier balance between bonds and equities.

Author: Ricardo Goulart


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