UK government floats plan to relax fee limit on pension fund investments
A fee limit protecting UK retirement savers from high charges is poised to be loosened further under proposals aimed at prompting pension funds to put billions of pounds into unlisted investments like private equity.
On Tuesday the government will announce plans to allow “well-designed” performance fees, typically levied by private equity and venture capital managers, to be excluded from a workplace pension fee cap, according to details of the proposal seen by the Financial Times.
These fees are currently included in a 0.75 per cent annual cap on charges for workers auto-enrolled in workplace pensions known as defined contribution plans. But trustees are rarely invested in assets that charge such fees because of concerns ranging from cost transparency to volatility.
Read more @Financial Times
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