Delay in pensions charge cap ‘makes sense’ says Barnett Waddingham

Published by Damian Stancombe on

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  • Damian Stancombe

    Damian Stancombe

    Partner and Head of DrumRoll

  • Commenting on reports today that the government is to delay the cap on management fees charged by pension providers, Damian Stancombe, partner, says:

    “This delay makes sense as the pensions industry has bigger fish to fry with the thousands of small companies who must auto-enrol their staff into a pension this year, this may be the real reason for the delay.

    “The proposed cap on fees is a bit of a blunt instrument in that it does not address the fundamentals of what really adds value to a scheme member’s pension outcomes. Trustees and companies need to understand that capping charges may not result in the best possible final pension for scheme members."