IMA backs controversial AMC for personal accounts

In response to the Personal Accounts Delivery Authority’s (PADA) consultation ‘Building personal accounts: choosing a charging structure’, the IMA says an AMC is a ‘fair and transparent charge’ which will help to encourage individuals to remain in personal accounts. However, consumer research by the PADA released last month found the majority of people believe an AMC would be unfair and would fail to put users in control as they would have difficulty calculating the charge in advance. Concerns were also raised an AMC would penalise those with larger pension pots. In response, the IMA says...