View more on these topics

WPSC calls for urgent review into high pension charges

London UK Parliament 480

The work and pensions select committee is calling on the Financial Conduct Authority or The Pensions Regulator to launch an urgent review of high pension charges.

In a report on improving governance and best practice in workplace pensions, published last week, MPs also called for a Government review of all pension charges every six months.

The report states: “We recommend the regulator carries out an urgent review of the ‘outliers’ with high charges, with a view to taking action if it considers this necessary.

“We further recommend that the Government carefully monitors the level of pension scheme charges more generally and reviews its position on capping charges in auto-enrolment schemes frequently, at least bi-annually, commencing in 2014.”

The WPSC welcomes a trend towards lower costs across defined contribution schemes but questions the Government’s policy not to cap pension charges.

The Government fears it would cause a “levelling up” of costs around any cap but the WPSC says it is “very concerned” about firms persisting with high charges and the potential for it to reduce retirement incomes.

Affluent Financial Planning managing director Carl Melvin says: “There is definitely scope to investigate outlier charges and determine whether there is consumer detriment or people are being ripped off. There is anecdotal evidence this is the case such as money going into Sipps and then being moved to Ucis with high charges.

“However, just because something is more expensive does not mean it is a rip-off so the regulator should look at value and not just cost.”

Recommended

Axa IM hires ex-FSA tech specialist as global compliance head

Axa Investment Managers has appointed Garry Murdoch as its global head of compliance. Murdoch was previously an FSA technical specialist within the regulator’s asset management department. Murdoch has also worked as director of international compliance at AllianceBernstein. Axa IM global chief operating officer Christophe Coquema says: “In the environment of increasing regulatory complexity, financial services […]

Two arrested in insider dealing investigation

Two people have been arrested and questioned as part of an investigation by the Financial Conduct Authority and the City of London Police into insider dealing and market abuse.  On 30 April, the FCA and the City of London Police Economic Crime Directorate executed a search warrant in West London. A man aged 41 and a […]

Tony Wickenden: Discounted gift trusts rules remain intact

The new GAAR guidance notes were published recently. In the examples on inheritance tax was confirmation that Discounted Gift Trusts will not be attacked under the GAAR. That DGTs were used as a specific example is, as it has turned out, a very good thing. HMRC stated at the beginning of the example on DGTs […]

Platform paper: Industry reaction

AJ Bell Marketing director Billy Mackay says: “The FCA’s sunset clause, which expires on 5 April 2016, provides a line in the sand for the end of legacy payments but, for many, it was happening anyway. There has been lots of talk about ‘clean’, ‘super-clean’ and even ‘industrial clean’. The simple fact is that larger […]

China’s economic bounce may already be over

By Mike Riddell (17 May 2016) Most people would explain the rally in global risky assets since mid-February as being primarily down to the spectacular volte-face from the Federal Reserve, where Janet Yellen (and others) dramatically toned down their narrative that the Fed would be hiking rates as many as four times in 2016. This explanation […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com