A proposed change to the Pension Schemes Bill may lead to a future cap on charges in drawdown funds.
The proposed clause published today states that the Secretary of State "may make regulations imposing a cap on the charges that may be imposed on members of flexi-access drawdown funds". The Bill is currently at the committee stage in the House of Lords. Although the clause does not mean that a charge cap will necessarily be imposed, it paves the way for it to be introduced. The government has already introduced a 0.75% charge cap for defined contribution default funds from this April. National Association of Pension Funds head of policy and research Jackie Wells told PA's siste...
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