Pensions - Articles - Schroders comments on DC Charge Cap announcement

 The Government has announced that the long debated defined contribution charge cap will be implemented at a level of 0.75% from April 2015. This only applies to the default investment option being used for auto-enrolment schemes but is likely to become the benchmark for DC schemes generally.

 Neil Walton, Head of the UK Institutional Business Development Group, comments on today’s announcement:

 “Following the flexibility announced in the Budget, we welcome today’s announcement and the focus on value for money, member outcomes and the importance of fee transparency. We have been designing and implementing cost effective outcome driven solutions for many years now particularly in the Multi-Asset space where certain funds have a fee level well below the new cap.

 "The new rules make sure all the costs in pension schemes are published and the government will then consider whether these should also be included in the new charge cap. This transparency is important to ensure an effectively functioning market place.

 “Schroders is committed to working with other industry providers to deliver low cost value for money solutions for our clients.”