31/10/2017
Plans to make pension schemes disclose costs, charges and investments (UK)
Pension schemes will have to publish the fees they charge members for investing their pensions and tell them where their money is invested, under proposed regulations designed to ‘open up the pensions industry’ for as many as 10 million savers who are currently in the dark about “where their pension is invested, what they are paying for, and why they are paying it”.
‘Occupational pensions: improving disclosure of costs, charges and investments’ sets out the details of proposals that will compel occupational schemes that provide money purchase benefits * to publish details of their costs and charges on the Internet and provide the web address where they can be accessed in members’ annual benefit statements.
Statutory guidance will additionally prescribe how trustees and managers should provide an illustration of the compounding effects of the costs and charges.
Members will also be notified in their benefit statements that they and recognised trade unions have a right to request information from trustees and managers about where their money is invested.
From April 2018, failure to provide this information could result in trustees being fined up to £50,000.
Overall, the government claims that the proposed regulations will ‘create a generation of more informed savers’ who have the tools to compare the value for money provided by their scheme and potentially have greater choice over where their money is invested’.
The proposals also represent a rapid response to the ‘clear lack of transparency on some costs in pension schemes’ identified by the latest pension charges survey, which summarises how charges in defined contribution workplace pension schemes have changed since measures were introduced following the introduction of Automatic Enrolment.
* The Financial Conduct Authority (FCA) will consult on corresponding rules for workplace personal pensions during 2018.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
Keep up to date with the latest news by following us on social media:-
Watch the video to find out how CPA can help you
Read Our Blog – How to overcome common excuses for non-payment
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.