Does True Wealth engage in securities lending in Pillar 3a?
No, securities lending of ETFs or index funds, i.e. the lending of these securities, is currently neither done by True Wealth nor by the custodian bank of the pension foundation.
However, if securities lending is correctly secured by means of proper collateral management and the bulk of the resulting proceeds is passed on to the clients or pension fund beneficiaries, there is nothing to be said against securities lending in principle, which is why we do not want to exclude it in the 3a investment regulations.
It should be noted that securities lending can also be used in portfolio management within ETFs and index funds, which is not necessarily a bad thing per se.