'Artificial' charge cap must not be limited to AMC, Scottish Life warns

Jenna Towler
clock

The planned cap on annual management charges (AMC) for pension schemes is too narrow and risks bringing an "artificial" element to the market, Scottish Life has said.

Business development manager Fiona Tait said the provider was against the plan - put out for consultation by the Department for Work and Pensions last week - as it "brings in something artificial". "Where people talk about charge caps I am not sure they are sure about what they are capping. If they are capping the AMC I do not think it will achieve anything. AMC charges are the one area of pensions where prices have consolidated and come down a lot." She explained that the AMC does not represent additional charges such as administration, varying investment charges and the price of adv...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read