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A UK pension scheme has been branded “deeply irresponsible” after investing in Bitcoin.

The unnamed defined-benefit scheme became the first in the UK to make the plunge, using 3% of its assets to buy into the cryptocurrency last month.

Pension specialist Cartwright acted as an adviser to the scheme and said the allocation was a “strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile”.

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It claimed its approach meant the scheme could benefit from a significant potential bonus while limiting the possible negative outcomes.

But some experts seem less enthusiastic about the decision, warning it bordered on “gambling with retirees’ futures”.

“This is a very strange decision. Pension funds should surely be investing for the long term rather than speculating over the short-term,” Colin Low, managing director at Kingsfleet, told Newspage.

“It is ironic that a pension fund, having one of the longest investment time horizons, should speculate its beneficiaries’ assets on something that has no intrinsic value.”

Daniel Wiltshire, actuary at Wiltshire Wealth, added: “This is deeply irresponsible. Pension trustees have an obligation to ensure scheme assets are managed prudently.

“This precludes taking punts on a basketcase asset class like crypto. For the sake of the members, I hope the regulator is paying attention.”

Why are people so concerned?

Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years.

Some investors see cryptocurrency as a “digital alternative” to traditional money – but it is very volatile, with its price reliant on larger market conditions.

Pension scheme trustees tend to be against taking big risks with retirees’ funds.

Advice from the Financial Conduct Authority states “you should never invest money into crypto that you can’t afford to lose” and warns people to be prepared to lose all their money.

And, while a 3% allocation doesn’t sound like a lot, it’s enough to make an impact on the pension fund’s performance.

This means that if Bitcoin continues to skyrocket, it could boost the scheme in a big way, but equally if it sinks, it could have a significant negative impact.

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As a defined pension scheme, it does mean the risk is being taken by the employer should there not be enough assets to meet future pension payments, rather than being borne by members.

Laith Khalaf, head of investment analysis at AJ Bell, says plenty of people have bought crypto personally, but it’s harder to make the case for investing in it to diversify a pension portfolio.

“While the price of Bitcoin is currently riding high, in the past we’ve seen strong performance quickly giving way to dramatic price falls. That in itself is a big hindrance to Bitcoin being adopted by consumers and businesses as a means of exchange,” he says.

“If you think Bitcoin is the future of currency despite its volatility, ask yourself if you’d be willing to be paid by your employer or billed by your mortgage provider in the cryptocurrency.

“It’s possible Bitcoin will thrive and prove its doubters wrong, but it’s also possible it will ultimately become worthless.”

Just last week, it hit a record high above $£99,000 – but less than two years before that it dropped below $17,000 following the collapse of crypto exchange FTX.

Some experts believe the potential pay-off means an investment in Bitcoin is a risk worth taking.

Chris Barry, a director of Thomas Legal, says that anything less than a 5% allocation is “sensible”, and UK pension funds need to catch up to their US equivalents who have been investing in crypto for years.

“Bitcoin is the top performing asset class over the past 10 years on average, even beating the NASDAQ. The direction of travel following Trump winning the US election is very bullish indeed,” he adds.

David Belle, founder and trader at Fink Money, has a similar view, saying a pension scheme portfolio is about numbers trying to deliver a return.

“A portfolio is just numbers made up of different betas, assets which either outperform or underperform a benchmark. Crypto is a fine asset class if it fits risk appetite.”

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Government accused of ‘cover-up’ over collapse of China spy trial

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Government accused of 'cover-up' over collapse of China spy trial

Kemi Badenoch has accused the government of a “cover-up” over the collapse of a China spy trial.

The Tory leader said there were a “lot of questions to answer” as to why the trial involving two men did not proceed.

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It is expected that ministers will have to answer questions about the case today, as parliament returns from recess.

In particular, there are questions around the role played by Jonathan Powell, the prime minister’s national security adviser, in the trial not going ahead.

Ministers have repeatedly said Mr Powell played no role in the decisions that led to the collapse of the trial – but Ms Badenoch said she was “worried that there is a cover up taking place”.

Speaking to broadcasters in Grantham today, Ms Badenoch said: “We will be making sure that we ask questions in parliament about exactly who knew what, where and when, but Jonathan Powell certainly has questions to answer.”

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She refuted suggestions from ministers that Mr Powell had had no involvement in the collapse of the trial, saying: “We are seeing information that contradicts that.

“That is why it is very important that the government come clean about who knew what, where, when, and why this has happened.”

Former parliamentary researcher Christopher Cash, 30, of Whitechapel, east London, and teacher Christopher Berry, 33, of Witney, Oxfordshire, were charged with passing politically sensitive information to a Chinese intelligence agent between December 2021 and February 2023. They have both denied the allegations.

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Over the past week, Sir Keir Starmer, his ministers and Mr Powell have faced accusations they were involved in the trial being dropped.

Last week Stephen Parkinson, the director of public prosecutions and the head of the Crown Prosecution Service, took the unusual step of sending MPs a letter to claim that the government repeatedly refused to provide evidence that China represented a national security threat at the time of the allegations.

Mr Parkinson said the CPS had tried “over many months” to get the evidence it needed to carry out the prosecution, but it had not been forthcoming from the government.

Downing Street also said today it was “entirely false” to suggest the government influenced the collapse of the case because of concerns Beijing could withdraw investment in the UK.

Asked about reports in the Sunday Times which suggested a decision was taken high up in government to abandon the case, the prime minister’s official spokesman told reporters: “It is entirely false. The CPS (Crown Prosecution Service) decision to drop the case was entirely a matter for the CPS.

“There was no role for any member of this government, no minister, or special adviser, to take any decision in relation to this case. That is entirely for the CPS.”

The government had argued that China needed to have been branded an “enemy” during the period it was accused of spying for the prosecution to go ahead – effectively blaming the previous Conservative government.

The Conservatives claim the government’s rationale is an excuse because it had said many times Beijing was a national security threat while it was in government.

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The prime minister has said he wanted to be “absolutely clear no ministers were involved” in any decisions relating to the case, but notably sidestepped answering whether Mr Powell was involved.

Bridget Phillipson, the education secretary, yesterday gave the government’s most definitive answer yet about whether Mr Powell was part of the reason the case was dropped weeks before they were set to go on trial.

Asked on Sunday Morning with Trevor Phillips if she could assure him that the national security adviser played no role in the decision, Ms Phillipson said: “Yes, I can give that assurance.

“We’re very disappointed that the CPS were not able to take forward the prosecution.”

The Liberal Democrats have called on the government to hold an inquiry into the collapse of the case.

Calum Miller, the party’s foreign affairs spokesman, said the case had “exposed appalling gaps in our government’s ability and willingness to challenge China’s espionage efforts”.

“We cannot let the government sweep this case under the rug in its efforts to cosy up to President Xi. An inquiry – preceded by rigorous scrutiny through parliament – would provide the answers the public deserves.”

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Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

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Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

Tommy Robinson refused to hand over his phone pin when police stopped his Bentley on the way to Benidorm, a court has heard.

He allegedly told officers “Not a chance, bruv” and said he was a journalist when they pulled him aside at the Channel Tunnel at Folkestone in July 2024.

Robinson, real name Stephen Yaxley-Lennon, is accused of “frustrating” counter-terrorism powers by refusing to give access to the phone.

He denies the charge.

The right-wing political activist was flanked by security guards as he arrived at Westminster Magistrates Court for the opening of the trial on Monday.

The 42-year-old faces three months in prison and/or a £2,500 fine if found guilty.

Robinson had £13,000 and 1,900 euros on him when he was stopped and told police he was going to Benidorm in Spain for a few days, said prosecutor Jo Morris.

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He allegedly refused to give the pin as he claimed the phone had sensitive “journalist material” on it.

He’s said to have told police: “It’s my work, I’m a journalist,” claiming it contained information about “vulnerable girls”.

The court heard Robinson was stopped in his silver Bentley SUV because he gave “short, vague replies” about what he was doing and “made no eye contact”.

PC Mitchell Thorogood told the court it was also “unusual” he bought tickets on the day rather than in advance and was in an expensive car not registered in his name.

Pic: PA
Image:
Pic: PA

When police took Robinson into an interview room and demanded his phone, he allegedly told them: “Not a chance bruv… you look like a c*** so you ain’t having it.”

Officers said they recognised Robinson when they stopped him and his lawyer, Alisdair Williamson KC, suggested the stop may have been “discriminatory” against his political beliefs.

Police can stop anyone at a UK port and hold them for six hours if they suspect they may be involved in planning or committing acts of terrorism.

They are legally obliged to answer questions and must give access to their electronic devices or face a criminal charge.

In a video on X before the hearing, Robinson said Elon Musk had “picked up the legal bill” for “this absolute state persecution”.

The case comes a month after Robinson led a huge rally in central London under the banner ‘Unite the Kingdom’.

The trial continues.

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Man arrested over 1994 murder of 13-year-old Lindsay Rimer

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Man arrested over 1994 murder of 13-year-old Lindsay Rimer

A man has been arrested on suspicion of the 1994 murder of 13-year-old Lindsay Rimer.

Police said the man was arrested at an undisclosed prison where he is serving a sentence for other offences.

The man, who is being interviewed today and tomorrow, is expected to be bailed and returned to prison while enquires continue.

Officers are also interviewing a number of potential witnesses in the Hebden Bridge and wider Halifax area.

Lindsay left her home to buy a box of corn flakes late during the evening of 7 November, 1994, but didn’t return home.

Her body was then found in a canal close to her home six months later.

Following today’s arrest, senior investigating officer, detective chief inspector James Entwistle, said: “We remain very firmly committed to doing everything we can to get justice for Lindsay, and to give her family the answers they still so desperately need after all these years.

Lindsay Rimer's body was found in a canal close to her home six months later. Pic: West Yorkshire Police
Image:
Lindsay Rimer’s body was found in a canal close to her home six months later. Pic: West Yorkshire Police

“The arrest we have made today comes as a result of our continued focus on progressing the investigation.

“We are keeping Lindsay’s family updated and, while we appreciate the understandable public interest that today’s arrest will bring, we do not anticipate any immediate developments at this stage.

“Although it is now more than thirty years since Lindsay was murdered, we remain convinced there is someone out there who has vital information that could finally help to ease her family’s pain, and we urge them do the right thing and tell us what they know.”

Anyone with further information has been urged to contact police by calling 101 quoting Operation Posemill, or sending a text or voicemail to 07707147314.

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