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<p /> <p>The Government and regulators have introduced a package of measures, including
establishing Independent Governance Committees to improve governance in contract based
pension schemes, improved governance standards for trust based schemes and the introduction
of a 0.75 per cent cap on charges in the default funds of schemes used for automatic
enrolment. Subject to Parliamentary approval, these changes will come into effect
from April.</p><p> </p><p>The Government is also banning a number of charges which
are no longer appropriate in the context of automatic enrolment into workplace pensions.
From April 2015, we will extend the existing ban on consultancy charging to all contract-based
schemes used for automatic enrolment. Likewise, adviser commission and Active Member
Discounts, which penalise those who stop contributing or leave their employer and
move jobs, will be banned in all schemes used for automatic enrolment from April 2016.
We are also introducing measures to improve transparency throughout the value chain
in the workplace pensions market and expect that this will lead to increased competition
on costs and charges to the benefit of the consumer.</p><p> </p><p>The recent pensions
flexibility reforms are also an opportunity for the retirement income industry to
develop new products that meet the evolving needs of consumers. The new flexibility
will help consumers choosing to select an annuity or another option to access their
pension savings to get a better deal in a more competitive market place. The shape
of the market will now be driven by the choices consumers make, placing power back
into the hands of savers.</p><p> </p><p>Furthermore, as of the end of December, over
5.1 million workers have been automatically enrolled into a workplace pension. This
is having a significant impact on the private pensions market and by 2020, we estimate
that automatic enrolment will have generated an additional £8 to £12 billion a year
in workplace pension saving. The growth in this market is supporting strong competition
between providers and schemes.</p><p><strong> </strong></p><p><strong> </strong></p><p><strong>
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