View more on these topics

Govt to force fund managers to disclose all pension charges

The Government is to force fund managers to provide a full breakdown of all charges related to defined-contribution workplace pensions.

In a written ministerial statement published this week, pensions minister Steve Webb confirmed that the Government will introduce new measures requiring transaction charges in pension schemes to be disclosed.

Webb said: “I am pleased to announce the Government will be introducing new measures to require transparency for transaction charges in pension schemes. 

“We intend to table an amendment to the Pensions Bill to introduce this latest step in the Government’s wider plans to ensure consumers receive value for money from their pension savings.

“Transparency of costs and charges is fundamental for good scheme governance and to enable comparison between schemes.

“Our amendment, which is intended for debate at the report stage of the Bill in the House of Lords, will place a duty on the secretary of state to make regulations requiring greater transparency around the transaction costs incurred by work-based defined-contribution schemes.”

Investment Management Association director of public policy Jonathan Lipkin says: “Crucially, better disclosure requires both consistency and methodological integrity.  

“The IMA has already undertaken significant initiatives on transaction costs but recognises there is more still to do.”

Money Marketing  revealed earlier this month that the Government is considering abandoning plans to cap pension charges until after the May 2015 general election because the reform is “too complicated”.

Wingate Financial Planning director Alistair Cunningham says: “The drive for greater transparency is definitely a good thing because people should know what they are paying for when they invest in a pension.

“This information shouldbe made available to savers but if it is all dumped on them at once, most people will not engage.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm