Pensions - Articles - Proposed pension charge cap comment

 Phil Loney, Group Chief Executive of Royal London:

 ‘Shareholders will be the only winners through the introduction of price controls. The price cap will rapidly become the floor.

 ‘Our research strongly demonstrates that charges on Workplace Pensions will fall much further if left to a competitive market (a fall of as much as 40%), so introducing a cap now will trap costs at today’s levels.

 ‘Shareholders in the plc must be raising a toast to the Pensions Minister as he has underwritten their returns for some time to come. The losers will be members of schemes whose pensions will not benefit from the anticipated fall in charges that we anticipate in a free market. The other losers are smaller employers who will be forced to pay set up charges outside the capped annual management charge.’