Managers in U.K. question what disclosure really means
Bloomberg
Some money managers operating in the U.K. have been called out for not complying with cost disclosure industry standards, but sources argue a big part of the problem is that investors and managers can differ on what s sufficient disclosure and how it s presented.
Cost templates created by an investor and manager group known as the Cost Transparency Initiative aim at helping U.K. investors determine hidden non-management fees that money managers charge as part of overall costs. They also help to determine transaction costs.
Since the introduction of the templates in 2018, retirement plans have been requesting information on manager costs via companies that collect this information.
DWP bans flat-fee AE charges on pots worth under £100
Opperman: No-one should find their hard-earned pension savings eaten away by charges
The Department for Work and Pensions (DWP) will ban the charging of flat fees on auto-enrolment (AE) pots valued at or below £100 and launch work on how to standardise cost and charges reporting.
The government s response to its review of the default fund charge cap and standardised cost disclosure, published today (13 January), said that pensions pots that are worth £100 or less, and are saved.
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So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
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