Fidelity International says the Government has ducked a complicated but critical decision about the charging structure for personal accounts by deferring it to the new delivery authority.
Fidelity International UK and Europe institutional business president Simon Fraser says that the Government has a duty to see all elements of this decision through and simply handing over an integral part of the future personal accounts is “not good enough”.
Although he welcomed the lowering of the contribution cap to £3,600 he says there is more work to be done with the threat of levelling down still looming.
He says: “The Government’s response today is a step in the right direction, and while there is considerable work to be done and significant elements which require further careful thought we look forward to working together with the industry to ensure the successful roll out of personal accounts in 2012.”
He says he understands the Government’s concerns about extending the exemption for employer sponsored pension schemes to contract-based provision but that overlooking them would be an error.
“There needs to be a solution found and we look forward to working with them to find a route to marry the needs of the EU Directive with the needs of UK pension savers in 2012,” he says.