Incorporating performance fees within the charge cap
A consultation on proposed measures to allow occupational defined contribution pension schemes to smooth performance fees within the charge cap and a call for evidence on look-through.
This consultation is the next step to the consultation ‘Improving outcomes for members of defined contribution schemes’. It contains the government response to the performance fee section (Chapter 3) of the September 2020 consultation and consults on consequential draft regulations. The government aims to publish a response to this consultation alongside a response to the remainder of the September 2020 consultation, including final draft regulations and final statutory guidance, in June 2021.
This consultation also seeks views at this stage on the current position on look-through in relation to charge cap compliance, as a potential barrier to investment in alternative asset classes, particularly venture capital and growth equity. The government’s June 2021 response will include a summary of responses we receive and next steps on this issue.
The consultation is aimed at:
- pension scheme trustees and managers
- pension scheme members and beneficiaries
- pension scheme service providers, other industry bodies and professionals
- civil society organisations
- any other interested stakeholders
Please send your consultation responses via email to:
Sam Haylen, Vicky Bird, Tessa Lubrun and Andrew Blair
pensions.investment@dwp.gov.uk