IMA comments on pension charges cap
Responding to the details of the pension charges cap announced today, Jonathan Lipkin – Director of Public Policy at the Investment Management Association, which represents UK investment managers – said:
“While there is understandable concern in Government about assuring DC scheme quality, a charge cap is not the best way to achieve good outcomes and this was a key finding of the 2013 Office of Fair Trading (OFT) market study. Instead, the main focus should be on improving governance structures and standards across the DC environment.
“The IMA remains committed to working with Government and regulators to facilitate better governance as well as improved consistency and transparency of charges and costs disclosure. Such consistency and transparency is essential for building public trust in the pensions system.
“The Government has correctly recognised that charges and transaction costs should not be bundled together in a cap, again a clear conclusion of the OFT. Such an approach would have been counter-intuitive and counter-productive, unduly complicating the default design process and artificially constraining scheme decision-makers.”
