FCA Proposes Pension Fee Exemption, Putting Private-Market…
By Rick Steves
AI summary of the source article
The UK Financial Conduct Authority has proposed excluding certain performance-linked fees from the 0.75% charge cap on workplace default pensions. The measure aims to allow providers to invest more easily in private equity, venture capital, and private credit.
Why it matters
The change would give providers more room to consider private equity, venture capital and private credit, while placing greater weight on their ability to demonstrate that higher charges are justified by better value for savers.
Key facts
- The FCA proposed exempting certain performance fees from the 0.75% charge cap on default funds in workplace pensions.
- The change would bring the FCA regime closer to trust-based schemes, where certain performance fees have been outside the cap since 2023.
- Consultation responses are due by 14 January 2027, with final rules expected in summer 2027.
Source excerpt · FinanceFeeds
The Financial Conduct Authority has proposed excluding certain performance-linked fees from the charge cap applying to default funds in workplace pensions it regulates. The change would give providers more room to consider private equity, venture capital and private credit, while placing greater weight on their ability to demonstrate that higher charges are justified by better value for savers. Th…