FCA proposes greater pension investment flexibility to support long-term value for savers
By FCA
AI summary of the source article
The FCA is consulting on proposals to exclude certain performance-linked fees from the charge cap for default funds in workplace pensions. The proposed exemption aims to grant providers investment flexibility while introducing safeguards on transparency and fee allocation.
Why it matters
The FCA states that 'Greater alignment would support competition and choice and reduce unnecessary complexity for providers operating across both parts of the market.'
Key facts
- The FCA proposes excluding certain performance-linked fees from the charge cap for default funds in regulated workplace pensions.
- The proposals include safeguards covering transparency, fair allocation of fees between savers, and scrutiny of private asset valuations.
- The FCA is seeking consultation responses by 14 January 2027 and expects to finalize rules in summer 2027.
Source excerpt · FCA
Workplace pension providers could have greater flexibility to invest for the long term under proposals from the FCA, helping them deliver better outcomes for savers while ensuring savers' interests remain protected. The FCA is consulting on excluding certain performance-linked fees from the charge cap for default funds in workplace pensions it regulates.Performance-linked fees are common in privat…