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MEP wants high pension fees paid back to investors

European Parliament economic and monetary affairs committee chair Sharon Bowles is calling on pension providers that charge “exorbitant fees” to give money back to investors.

Bowles, LibDem MEP for the South-east, says provider fees are particularly high in the UK compared with other parts of Europe. She says: “Morally, it would be right to get money back to the investors. The problem is that asset management costs eat up substantially more of a fund’s growth than is received by the investor.”

Bowles has passed information about the proportion of funds going towards charges to the Government and to the European Commission and hopes they will act on it.

She is considering recommending changes to the EC’s packaged retail investment products regime.

Bowles says a lack of transparency around fees outside the top-line management charges means it is difficult for people to know the true cost of their investment.

Access Wealth Management financial planner Jim Clancy says: “Regulators have to strike a balance between allowing providers to make a profit for shareholders while making the charges fair and clear so consumers can decide where to invest.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. How long have I been posting about high charges from the UK pension industry.Let us hope this lady not only gets our charges refunded ,but also all the lost growth as well.Is everyone apart from myself and a few lone voices afraid to take on the pension industry.I will continue to comment until this industry reduces its charges and becomes a lot more transparent.I do hope you post my latest comment because my last one appears to have disappeared without trace.

  2. Please could someone define what “high” charges are?

  3. Well according to the BBC Panorama pension fund charges that are lower than the equivalent charge on ISAs and Bonds are “high” charges.

    So should ISA and Bond providers be running scared now!?

  4. Of course they are high in the UK:
    1. There is a cost of advice to cover
    2. There is constant meddling from the UK governments that increases costs for pensions providers

    Comparing the costs of pensions in the UK with Europe is like comparing apples and pears as they are two totally different animals.

    Maybe ex MEP’s should consider refunding some of the exhorbitant salaries and expenses they have received over the years whilst they are looking at pensions as well.

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