City Of London
UK Proposes Easing Pension Fee Cap in Win for Private Equity
- Higher fees leaves critics questioning value for money
- Move means more capital for UK infrastructure and start-ups
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The UK government proposed relaxing a cap on fees pensions pay to investment managers, a step long awaited by private-equity and infrastructure fund managers looking to offer their products to individual savers.
The move would allow pension trustees to exempt performance-based fees from calculations of a cap on charges, the Department for Work and Pensions said in a rule consultation published Thursday. The change is aimed at defined contribution plans where employees put in a slice of their income and aren’t guaranteed a specific payout.