Legacy pension providers have made "significant progress" in reducing costs and charges following earlier recommendations by the Independent Project Board (IPB) that they do so, the regulator has found.
A joint report by the Financial Conduct Authority (FCA) and Department for Work and Pensions (DWP) out on 13 December, said more than one million customers of contract-based and trust-based legacy schemes are now paying lower charges than before. Despite this, for 16% of assets under management in contract-based schemes and 15% in trust-based schemes, progress has been labelled either "unsatisfactory" or "unclear" with customers still at risk of high costs and charges. The cost reductions were achieved after providers reduced their product charges to 0.75% or 1%, the FCA said. The Apr...
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