Changes to stakeholder regulations are forcing investment trusts out of the stakeholder picture, says Debbie Harrison
The 1% cap on annual charges for stakeholder pension schemes has inadvertently eliminated investment trusts from the scope of most of these funds. Robert Hall, a partner with the consultant Watson Wyatt, says: 'There is a problem for stakeholder schemes wishing to use investment trusts to obtain exposure to venture capital assets or to track equity indices that include investment trusts. 'Under Regulation 14 (of the original stakeholder regulations), the cap on charges must be calculated as 1/365th of 1% of the fund per day. This does not include stamp duty and stockbrokers' commission...
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