The DWP has recently published a new consultation on a proposal to remove performance fees from the existing Charge Cap for DC schemes. The proposals would:
- Add any performance related fees to a list of exclusions from the Charge Cap.
- Reverse the new rule, introduced in October, that enables performance fees to be calculated over 5 years, rather than annually.
- Potentially still require performance fees to be disclosed.
The PLSA plans to respond to this on behalf of members. The relatively short consultation window means we may not be able to consult with members as comprehensively as we usually would. However, we have a small number of questions that we would like your feedback before 10 January 2022. It should take less than 5 minutes to complete.
The questions are:
- Has the charge cap in its current form influenced your investment decisions?
- Are you likely to invest differently if performance fees were removed from the charge cap?
- To what extent to do support the proposal to remove performance fees from the charge cap?
- Would you like the Government to take any alternative steps?
- Have you taken any steps following the rule change that allowed performance fees to be smoothed over 5 years, and how might this be impacted by this new proposal?
(Please note that this survey is for members with DC schemes only.)
Complete the survey
If you would like to give us more detailed feedback – including setting up a discussion early in the new year – or indeed you have any questions, please contact [email protected]