DWP consults on removing charge cap performance fees

'Will result in a level playing field for all'

clock • 3 min read

The Department for Work and Pensions (DWP) has issued a consultation on removing performance-based fees from the defined contribution (DC) charge cap to drive investment in illiquid assets.

The Broadening the Investment Opportunities of DC Pension Schemes consultation comes weeks after the chancellor's Mini Budget, which set out the government's intentions to take these fees out of the charge cap, after such a move was initially consulted on in 2021. The government is keen for pension schemes to increase their investment in illiquid assets as part of its growth plan. The proposed change would allow schemes to exclude ‘specified performance-based fees' from the list of charges that fall within the regulatory charge cap limit of 0.75% - if they feel this would be in their mem...

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