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<p /> <p>The Government’s Command Paper, ‘Better Workplace Pensions: Further measures
for savers’, published in March, set out a range of measures including a cap on charges
in default fund arrangements, a ban on inappropriate charges and proposals to introduce
minimum governance standards and improve transparency across workplace defined contribution
schemes.</p><p> </p><p>Following this, Government launched its consultation on draft
regulations on governance and charges in occupational pension schemes in October 2014.
Subject to Parliamentary approval, the majority of this legislation will come into
force from April 2015, alongside Financial Conduct Authority (FCA) rules in relation
to workplace personal pension schemes where appropriate. From April 2015, the Government
intends to introduce a charge cap on the default funds of qualifying schemes, set
at 0.75 per cent of funds under management and the first phase of enhanced transparency
with trustees and Independent Governance Committees (IGCs) being required to report
on costs and charges for the first time.</p><p> </p><p>In 2015 Government will consult
on regulations under duties in the Pensions Act 2014 requiring information about transaction
costs to be disclosed to members and others, and the publication of costs and charges
information. The FCA also intends to consult on amending their own rules to introduce
equivalent enhanced transparency provisions for workplace personal pension schemes
during 2015. The Government has also set out its plans to review the level of the
default fund charge cap, to see if it should be lowered, and also whether it should
include some or all of the transaction costs that are ultimately borne by members
within a cap. This review will take place in 2017.</p><p> </p><p>Taken together the
combined effect of these measures on charges, governance and transparency and the
Government’s commitment to a review should ensure that savers are being enrolled into
workplace schemes that are well run and in members’ interests.</p>
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