Former chancellor Lord Lawson is attempting to force pension providers and fund managers to provide greater disclosure on a range opaque pension costs.
The Financial Times reports the Tory peer has written a draft amendment to the pensions bill which would force firms to disclose costs such as fees to investment managers, broker commission, and bid-offer spreads to foreign exchange counterparties.
Lawson also wants greater disclosure on payments to custodian banks, third-party scheme administrator fees and other charges to professional advisers and fees on investments in pooled funds.
Pensions minister Steve Webb is expected to update parliament on his plans to introduce a charge cap tomorrow. It was revealed last week that the Government was likely to delay the introduction of its charge cap, originally due to be introduced this April, by at least a year.
The newspaper says Lord Lawson plans to wait to hear Webb’s update before moving his amendment.
He told the House of Lords he would work with Labour to force the disclosure if Webb’s response was “inadequate”.
Lawson said: “Events may subsequently suggest that there may be some need for regulation but initially the remedy must be to require disclosure.”
He said this would help remove “mischief” in the market.
Lawson added: “The costs are massive in this area. Some costs are not revealed at all; some are. Even with the costs that are revealed, there is such a lack of consistency.”
Earlier this week Webb said there will be no “screeching U-turns” over the Government’s pension charge cap plans but admitted its original timetable may have been unrealistic.