Stakeholder pension charge cap raised to 1.5%

The long-awaited announcement follows concerns expressed by the industry, suggesting the existing 1% cap would have made the new products uneconomic to sell. According to the Treasury's consultation on "stakeholder saving and investment products regulations, both medium term investment and pension stakeholder products will have an annual management charge capped at 1.5% for the first ten years of the life of the products, with the cap thereafter set at 1%. The rate of interest payable for cash deposit account, such as cash ISAs, must, however, be within 1% of the Bank of England's bas...