UK – Hermes Pensions Management (HPM), the asset management arm of the British Telecom Pension Scheme (BTPS), has announced that from next month it will separate the roles of its chairman and that of chairman of BTPS, which owns 100% of HPM.

Sir Tim Chessells, currently HPM chairman, will remain on its board as a director and will continue as chairman of BTPS.

Richard Bernays will become the new HPM chairman. Currently, he is a non-executive director of London-based banking group Singer & Friedlander, as well as being chairman and a director of a number of investment trusts.

Hermes says that these new arrangements have been put in place to give clearer identification of the separate functions and responsibilities of the BTPS trustees in discharging their duty to the members of the scheme and in overseeing the business of HPM.

They provide a clearer mechanism for identifying and managing any potential conflicts of interest between BTPS and Hermes. Also they ensure the appropriate framework and structures to oversee expenditure, performance, risk management and incentives, says Hermes.

The intention is that HPM’s board will consist of two representatives of the BTPS trustees, Sir Tim and David Davies, and two independent non-executive directors -- Richard Bernays and another yet to be appointed.

This is in addition to the senior management team of HPM, comprising chief executive Tony Watson, chief investment officer Nick Mustoe, chief operating officer Gerard Quirke, head of business development Charlie Metcalfe and head of stewardship David Pitt-Watson.

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