The government's plans to limit charges on pension schemes used for automatic enrolment have been labelled "not fit for purpose" in an official report.
The Regulatory Policy Committee said the Department for Work and Pensions' regulatory impact assessment was not up to scratch. Pensions minister Steve Webb announced plans to cap charges at about 0.75% in October. A consultation outlining the options was released soon after. The committee said the evidence presented does not adequately demonstrate why setting a charge cap is considered to have a zero net impact on the pensions industry. Tom McPhail, head of pensions research at Hargreaves Lansdown, explained: "The DWP conducted this consultation in a tearing hurry, in fact they rus...
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